Buying & Selling Businesses | Attorneys in Mississippi

In contrast to mergers and acquisitions, it's more common for a company to opt for acquiring all assets of another due to concerns about purchasing all of its stock. Asset purchase agreements offer an extremely tax-effective method for buying or selling substantially all of the assets of a corporation or business entity.

Contact Barnes, Bailey & Janoush, P.A. now to secure proficient legal counsel in Mississippi and navigate the business buying and selling process with confidence.

While Section 1060 of the Internal Revenue Code provides flexibility for buyers and sellers to structure transactions for effective tax planning, it's crucial for both parties to exercise caution to avoid potential tax pitfalls within asset sales. Sections 1245, 1250, and 197 of the Internal Revenue Code introduce various taxable recapture provisions that sellers and buyers must address. Buyers should also be vigilant in avoiding allocations leading to extended depreciation or amortization periods, which could result in significant adverse tax consequences.