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In this tutorial, key points about selling businesses are discussed. When selling, buyers typically prefer an asset sale to avoid assuming liabilities associated with stock sales. Asset sales allow buyers to write up equipment to fair market value and re-depreciate it, which is advantageous for them. However, sellers may dislike asset sales due to potential ordinary income taxes from depreciation recapture. When dealing with equity sales, the structure of the deal may differ. The tutorial also mentions the concept of escrows, where a portion of the purchase price (10-20%) is held in an escrow account for six to twelve months to protect buyers from unforeseen issues that may arise.
