Selling Shares in the Company (Share Sale)
A share sale involves the transfer of ownership of the company’s shares from the current shareholder(s) to the buyer(s). In this scenario, the buyer is acquiring another company, including its operations, assets, liabilities, and obligations. The business continues as usual, and employees are transferred along with the company.
Selling the Assets of the Company (Asset Sale)
In an asset sale, the buyer purchases specific assets of the company, such as intellectual property, inventory, or property, but the company itself is not sold. The seller retains ownership of the company, and only the assets agreed upon in the transaction are transferred to the buyer. While this option may offer more flexibility in choosing which assets to sell, the seller may face higher taxes in terms of corporation tax and capital gains tax (CGT).
