Share sales are often confused with business sales. The two may appear to be similar concepts however they are two very different from a legal perspective.
A share sale involves the sale of shares in a company to the purchaser. The business continues to be operated by the same company, however with different shareholders. In contrast, a business sale involves the transfer of business assets to a new owner (for example, goodwill, intellectual property, plant and equipment, land and trading stock).
Depending on the situation, the difference between a share sale and a business sale can result in a very different tax outcome, and after-tax net proceeds. The small business CGT concessions or other CGT relief may also be applicable. Velocity Legal can assist with all aspects of whether a share sale or business sale is most suitable in your circumstances.