Whether to buy business shares or business assets.

Q: I am looking to buy an insurance broker and the vendor has offered to sell his shares in the busi...

Q: I am looking to buy an insurance broker and the vendor has offered
to sell his shares in the business as opposed to the business assets. I
would receive a discount on the price for doing this but I am unsure what
the best route is.


A: For the vendor, selling his shares is more beneficial from a tax point
of view. From your side however, buying a business through the purchase of
shares can be problematic.


If you buy the business assets you are buying the goodwill, the contacts
and the book of