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๐Ÿ‡ฑ๐Ÿ‡น Lithuania /Economy & Trade

Buying a company or just its business? How share and asset deals differ

From Delfi · () Lithuanian

Translated from Lithuanian and summarized by DistantNews. Read the original for the full story.

At a glance

Explainer Official statement Context piece
  • A share deal transfers ownership of the company as an operating entity, while an asset deal focuses on selected assets, rights and contracts.
  • The structure determines the risks and liabilities assumed by the buyer, as well as business continuity and the complexity of the transaction.
  • COBALT associate lawyer Roberta Iลกkauskaitฤ— discussed the distinction in a press release.

Acquiring a business involves more than deciding what to buy. The buyer must also choose how the transaction will be structured, according to COBALT associate lawyer Roberta Iลกkauskaitฤ—.

One option is a share deal, in which the buyer acquires the company's shares and takes over the operating business as a whole. The other is an asset deal, which focuses on specific assets, rights and contracts that make up the business.

That choice affects the risks and obligations the buyer assumes. It also influences how business continuity will be maintained and how much effort the transaction itself will require.

Iลกkauskaitฤ—'s comments appeared in a press release.

About this summary

Originally published by Delfi in Lithuanian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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