When a company acquires assets of another. Sometimes, the seller company has financial problems or whish to sell assets for other reasons. The buyer company doesn't want to take control over the seller company, just buy some assets that considers of value.
The main differences between share acquisition and assets acquisition can be seen in the following table:
Asset acquisition | Adquisición of a company | |
---|---|---|
Control | The buyer doesn't take control | The buyer takes control of another company |
Assets being transfered | Some assets, the buyer choose which to buy | A majority of all company assets |
Cost | High, every asset has to be valued | Relatively simple and inexpensive |
Seller | Company | Shareholders |