Liquidating assets pros cons
When making the decision to sell or buy a company there are two ways to structure the deal – as an asset or as a share sale (purchase).
Another advantage of the asset deal for the purchaser is the possibility to renegotiate the allocation of the purchased assets in a more tax efficient way."Traditional REITs and nontraded REITs share the same name, but they are very different," he said, noting nontraded REITs have higher fees, less liquidity and a lack of mark-to-market pricing.(Mark-to-market pricing is an accounting practice that provides investors with an appraisal of a company's assets at the current market price.) As the name implies, nontraded REITs are not sold on the stock exchange.An asset sale, contrary to popular believe, does not necessarily mean equipment or liquidation sale.Assets purchased include tangible (fixtures, furniture, equipment, inventory, leaseholds, etc.) as well as intangible (brand name, client list, contracts, etc ).