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ARTICLE · 25 AUGUST 2021

Key differences between a Business Sale and a Share Sale

Ivy Law Group
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The article examines these two processes (a business sale or a share sale) - the differences and the risks involved.

AustraliaCorporate/Commercial Law
Geeti Chawla
Geeti Chawla
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Often the concept of buying or selling a private company is confused with buying or selling a business. However, there are fundamental differences between the two. The sale of a company occurs when all of the shares in that company are acquired (Share Sale), while the sale of a business occurs when the assets of that business are acquired (Business Sale). In this article, we look at how the two processes differ, along with the risks involved with each.

What is a Share Sale?

The law recognises a company as a separate legal entity, which is independent from its shareholders. A Share Sale transaction involves taking over the company in its entirety, including all associated risks, liabilities, obligations and claims in connection with that company.

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