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In this section of the video tutorial, the focus is on the different types of business sales, primarily asset sales and stock sales. Buyers generally prefer asset sales because they avoid inheriting liabilities and can adjust the value of equipment for depreciation. Conversely, sellers may prefer stock sales to avoid ordinary income tax from depreciation recapture. The discussion also emphasizes the role of escrows in transactions, with buyers typically setting aside 10-20% of the purchase price in an escrow account for six to twelve months. This is to protect against potential undisclosed issues arising after the sale.
