Legal Questions and Answers

Get free proposals from vetted lawyers in our marketplace.

GET FREE PROPOSALS
No upfront payment required. Pay only if you hire.
Home Q&A Forum What is a stock purchase agreement?

Acquisitions

Stock Purchase Agreement

Connecticut

Asked on Aug 4, 2023

What is a stock purchase agreement?

I am a small business owner looking to purchase a company and I am interested in understanding more about a stock purchase agreement. I understand that this type of agreement is used when a buyer wishes to purchase the stock of a company, but I would like to learn more about the specifics of the agreement and what is involved in the process.

1 Attorney answer

Answer

Acquisitions

Connecticut

Answered 416 days ago

Thomas L.

ContractsCounsel verified

Business Lawyer
Licensed in Connecticut
Free Consultation

There are two ways to purchase a company. Buy its assets individually, or purchase the stock of the company. Buying the assets is more legal work, and more expensive and disruptive to the purchased business' relationship with third parties such as employees, customers, vendors, and banks, but avoids assuming the liabilities of the selling company. Buying the stock of the company is far less disruptive, but runs the risk of assuming undisclosed liabilities of the company.

Use of the ContractsCounsel Q&A Forum does not create an attorney-client relationship between User and any Lawyer User. The Forum is not a substitute for legal advice from a lawyer but is intended to be educational and to help the user determine if legal services are necessary. The Forum, Content, and communications on the Forum do not constitute legal advice.
Meet some lawyers on our platform

Dolan W.

79 projects on CC
CC verified
View Profile

Benjamin W.

88 projects on CC
CC verified
View Profile

Michael K.

108 projects on CC
CC verified
View Profile

Ryenne S.

719 projects on CC
CC verified
View Profile

Find lawyers and attorneys by city