What Happens When You Sell a Business Asset?
We guide founders and deal teams through the practical side of disposing of equipment and other company property. When a piece no longer supports operations, a targeted sale can free cash and sharpen focus. Tax rules matter. The IRS requires reporting of such transactions on Form 4797 to determine gains or losses. That filing drives […]
Selling Your Business? Choose Between Stock or Asset Sale
We help founders and sponsors cut through jargon and make the core tradeoffs clear. Mike Rosendahl guides our approach to the practical tax and legal choices that shape any exit. Choosing an asset or stock structure fundamentally alters tax treatment, liability exposure, and net proceeds. That choice shapes purchase price, contract terms, and the timeline […]
Section 338h10 Election Explained for Business Sellers
Section 338h10 Election Explained for Business Sellers We cut through the fluff. A 338(h)(10) recharacterizes a stock purchase as an asset purchase for federal tax purposes. That shift can change post-sale proceeds and the buyer’s basis in assets. Why this matters: When a corporation is the target, the right tax treatment can preserve value for […]
Stock Sale vs Asset Sale: Which is Better for Sellers?
Stock Sale vs Asset Sale: Which is Better for Sellers? In the United States, choosing between an asset sale and a stock sale is a core M&A decision for any founder-led business. We cut through the noise. Quick clarity helps you plan taxes, price, and deal structure. An asset sale transfers selected assets and often […]
Purchase Price Allocation: How It Affects Your Taxes
Purchase Price Allocation: How It Affects Your Taxes We cut through the noise. When a founder-led business changes hands, the lump-sum sale must be broken down. That breakdown sets the tax basis for each asset. Buyers use those numbers to plan depreciation and amortization. Sellers use them to report gain or loss on specific items. […]