SaaS Asset vs Stock Purchase?

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November 05, 2025

by a searcher from Purdue University in Denver, CO, USA

Hey Community, I'm reviewing a SaaS product that belongs to a larger software company and would love to know the pros and cons. Specific questions: - Can I finance an asset purchase with an SBA loan? - Is buying an asset more complicated then buying a company? - Should I ask the seller to spin the asset into a company to make the whole transition easier? Thanks, Alex
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Reply by an intermediary
from The Johns Hopkins University in Gainesville, FL, USA
Yes, you can buy an asset with an SBA loan, so long as you have a business plan around it. Buying an asset is far easier than buying a company. There is no need to have the seller spin off the asset first.
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Reply by a searcher
from The University of Michigan in New York, NY, USA
asset purchase vs. stock purchase will have some tax implications. also, stock purchase can be messier because you're taking over the entity, meaning you'll have a continuation of contracts (probably not that relevant in SaaS), potential lawsuits, etc. Asset purchase is cleaner in that everything from a corporate entity perspective starts fresh. Nevertheless, even in a stock purchase agreement, you can add language to the docs to make sure issues don't arise. Given you're buying a product from an existing company rather than the whole company, I think this is all somewhat of a moot point, as you'll have to do an asset purchase.
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