Why is the most problematic form of business combination said to be one structured as an...

Question

Question

Why is the most problematic form of business combination said to be one structured as an asset purchase?

Answer 1

Answer #1

Ans : Reason are as follows :

* Sellers incurrs higher taxes due to which there is an high rise in purchase price.

* Leases are required to be terminated.

* Seller of an assets liquidate the assets and also pay the Liabilities part related to it.

Answer 2

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