Adam Ott and Landon Tracy, attorneys in the Salt Lake City office, wrote an article for the June 11 issue of Utah Business magazine addressing the importance of deal structures in the buying and selling of businesses.
The article emphasizes that deal structure is just as important as purchase price because it affects taxes, liabilities and practical outcomes. The two main structures are equity deals, where the buyer acquires ownership of the entire legal entity and assumes everything associated with it, and asset deals, where the buyer selects specific assets (and sometimes liabilities) while leaving the original entity behind. Choosing between these options depends on deal-specific factors that can benefit buyers and sellers differently, making negotiation of structure an early and important step in business deals.
To read the complete article, click here.
