Buying & Selling Businesses | Attorneys in Ridgeland, MS

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

Contact Barnes, Bailey & Janoush, P.A. now to secure proficient legal counsel in Ridgeland, MS 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, both parties must 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. Additionally, buyers should remain vigilant in avoiding allocations leading to extended depreciation or amortization periods, which could result in significant adverse tax consequences.