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← Asset deals versus stock deals
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Technicals
M&A
Lv 1/5
An interviewer asks you to describe the fundamental difference between a stock deal and an asset deal. Which answer is correct?
A
In a stock deal the buyer purchases the target's shares and inherits the legal entity; in an asset deal the buyer purchases specific assets and leaves the shares behind
B
A stock deal can only be paid for in shares, while an asset deal can only be paid for in cash
C
A stock deal is used for public companies and an asset deal is used for private companies
D
In a stock deal the buyer gets a tax step-up, while an asset deal keeps the old tax basis
Select an answer
TechnicalsM&ALv 1/5