The Pros and Cons of a Share Purchase Agreement

The pros of doing an asset purchase are that they tend to be slightly less risky because you are not acquiring the shares of an ongoing company. The downside of an asset purchase is it can be slower and contrary to what you popularly believe it can be a little bit more complex. If you buy assets, there is a change in the legal entity that is going to be operating the business. And it has a knock on effect in terms of contracts with clients and customers, for example,. Because you may have to get their consent to transfer in their contracts across to your new SPV.