An asset sale is the sale of a company’s tangible and intangible assets. A key attribute of an asset sale is that balance sheet, including cash, AR, and debt, remain with the previous owner. A stock sale is the sale of a company’s shares from the existing shareholders. Stock sales usually allow for a smoother transition at close. However, the buyer must be willing to absorb the past liability of the seller’s company. When considering either of these sales, a buyer and seller may find operational, legal, and tax advantages with one over the other.