M&A deal structure: Basics for buyers and sellers

Description

Abstract: Every M&A deal is unique, but they all involve one or a combination of three basic structures: stock purchase, asset sale or merger of companies. Making the wrong choice could lead to negotiation difficulties and tax disadvantages and could even prevent a deal from closing. This article explains the basics of each type of structure and the pros and cons for both buyers and sellers. A sidebar focuses on each structure’s tax advantages and disadvantages.