Deal Structure

Stock Sale

A deal where the buyer purchases the ownership interests of the company, including its assets and liabilities. Why it matters: Stock sales can be simpler for contracts and operations, but buyers may inherit more historical liabilities and will usually diligence those risks heavily.

Related terms

Buyer

The person, company, investor, or fund trying to buy the business. Why it matters: Different buyers value different things, so knowing the buyer type helps an owner understand likely questions, risks, financing needs, and negotiation style.

More from Deal Structure

Asset Sale Cash at Close Cash-Free Debt-Free Contingent Payment Debt-Like Items Earnout Escrow Holdback Majority Sale Membership Interest Sale Minority Rollover Minority Sale

Browse all 236 terms in the knowledge bank →

Get a real advisor on your team

Looking up terms is helpful. Having a vetted advisor who explains them in the context of your specific business is better.

Plan your exit Back to knowledge bank