Shari Redstone Faces Tough Choice as Paramount Seems Ripe for Sale

If you’re trying to sell a C Corporation, for instance, a stock deal will give you favorable tax treatment – in the form of reduced tax rates and, in some cases, tax exemptions of up to 100% on the gains. At least due diligence can protect buyers from such debt-laden stocks. But then again, while it might be effective in safeguarding against such liabilities, due diligence is not 100% foolproof. You still won’t be able to foresee all the risks that may potentially develop from the company’s past activities.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology.

Internal Sales Enablement Content – For Use by Sellers

Instead, they can find and access the right content using simple searches and reliable filters, which can ease the complete process. When I refer to an “asset sale,” I am not talking about simply selling assets such as inventory and equipment. Product Demo Script
The product demo script walks your sellers through a demonstration of your product features and benefits to help them do a deeper dive into the specifics of your product or service. Testimonials
Written or video testimonials offer first-hand endorsements of your product or service. Work with customer-facing teams to identify customers for testimonials, success stories, and case studies. The other thing to remember is that content in 2024 is not a once-and-done thing.

When it comes to liabilities, the only beneficiaries in asset purchase agreements are buyers – as they get to acquire just the assets while avoiding all the potential liabilities. Creative, results driven business & technology executive with 24 years of experience (15+ as a business/corporate lawyer). I bring a thorough understanding of the intersection of the law and business needs to any endeavor, having founded multiple startups myself with successful exits. Throughout my career I’ve represented a number large corporations (including some of the top Fortune 500 companies) but the vast majority of my clients these days are startups and small businesses. Having represented hundreds of successful crowdfunded startups, I’m one of the most well known attorneys for startups seeking CF funds.

  • Effective SAM ensures that sales reps have the right tools and content to engage customers at every stage of the buyer’s journey.
  • The acquiring business pays corporate taxes on capital gains while shareholders face the second taxation from sale proceed dividend distributions.
  • If a company provides full disclosure of its gross sales vs. net sales it can be a point of interest for external analysis.
  • Net sales allowances are usually different than write-offs which may also be referred to as allowances.
  • Stock sales are simpler to execute because they don’t require numerous transfers of individual assets.
  • Both approaches conceptually get you to the same place, but certain legal, tax and accounting issues make this decision important.

Before diving into the differences between asset sales and stock sales, we should point out that transactions involving certain types of businesses can’t be structured as stock sales. Publicly-facing industries including retail and restaurants rely heavily on converting assets to inventory, then converting inventory to sales. Other sectors like real estate often take long periods of time to convert inventory into revenue. Though real estate transactions may result in high-profit margins, the industry-wide asset turnover ratio is low. A higher ratio is generally favored as there is the implication that the company is more efficient in generating sales or revenues.

Digital Sales Rooms

Use this list of content to brainstorm the right assets that will accelerate growth, boost revenue, increase your client base, and drive long-term success in a volatile world. Regular analysis should occur to help your company understand what content is being shared most often, along with what content is most effective for supporting sales. Your sales asset management solution should help you track content performance. On the flip side, though, stock purchases may not attract as many prospective buyers as asset deals.

Improving Customer Engagement

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Asset Sale vs. Stock Sale When Selling a Business

If your company stores sales content in many locations, there may be duplicate content in several areas. You also run the risk of having outdated materials living on a server where they shouldn’t be. A sales asset management solution can help centralize sales content for easier access.

Understand How an Asset Sale Works

Keep in mind that the buyer and seller preferences described above are broad generalizations. For example, understanding which assets are current assets and which are fixed assets is important in understanding the net working capital of a company. In the scenario of a company in a high-risk industry, understanding which assets are tangible and intangible helps to assess its solvency and risk. This may also include strategies for each stage of the sales cycle to help sellers overcome objections and move buyers through each stage. Here’s a list of the top formats of sales enablement assets, and what each is good for.

What Is an Asset? Definition, Types, and Examples

Comparisons are only meaningful when they are made for different companies within the same sector. The asset turnover ratio tends to be higher for companies in certain sectors than in others. Retail and consumer staples, for example, have relatively small asset bases but have high sales volume—thus, they have the highest average asset turnover ratio. Conversely, firms in sectors such as utilities and real estate have large asset bases and low asset turnover. Fixed assets are resources with an expected life of greater than a year, such as plants, equipment, and buildings. An accounting adjustment called depreciation is made for fixed assets as they age.

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