Asset vs. Stock Purchase for a Commercial General Contractor Business

May 30, 2025
by a searcher in Washington, DC, USA
I am at the LOI stage for the acquisition of a large commercial contractor with many municipal and state projects and need to have crisp answers on whether to propose an asset vs. stock sale. The owner would be rolling ~20% into the new deals. This Company has bonding requirements with its customers. Is it realistic to request an asset sale given the various licensing, bonding and contract transfer requirements or is there a feasible buyer tax advantageous path with proper indemnities in a stock / membership interest sale. Would welcome feedback and experiences on the issue. Thanks!
from Northwestern University in Kansas City, MO, USA
from Columbia University in New York, NY, USA