RE/MAX - Residential and Commercial Real Estate   Serving the Ontario Community for Child Related Educational Businesses

Asset or Share Sale


There are Two Methods of Selling a Business

Asset Sale in Leased Premises

This method of selling a business is required when a company is either a Sole Proprietorship or a Partnership. A Buyer would purchase just your company's Assets, not your Liabilities. Assets would include but not limited to the following

Furniture and Equipment
Materials
Client Lists
Supplier Lists
Fixtures and Chattels
Basically everything on or in the leased premises

Optional items might include the following

Lease contract with Landlord
Security System Lease
Leases on Equipment (photocopier etc.)
Intellectual Property (website, e-mail addresses)
Company Name and Phone Numbers

Does not include

Any of your personal or company liabilities
Any liens or encumbrances
Any lawsuits or other proceedings in process

Share Sale in Leased Premises

This method of selling occurs when a Buyer is purchasing your incorporated company and the Shares of the company. Essentially, Buyer would be purchasing all the Assets and Liabilities of your Corporation. This method includes all the items in the "Asset Sale" method including the Optional Items and all liabilities 

Employees

In both an "Asset Sale" or a "Share Sale" you may be asked to dismiss all your employees giving the Buyer the option to rehire them back. The reason a Buyer would ask you to dismiss your employees is because the Buyer would incur costs involved in taking on your employees. Should the Buyer take on the employees and then at a later date, want to dismiss them, the Buyer would incur costs, subject to their tenure, for Holiday Pay, Dismissal Pay and other possible costs 


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