Section 2 General Considerations

• Library: Bus Trans 2005

Two fundamental considerations related to the acquisition of an ongoing business are:

• the form of the acquisition; and
• the purchase price or value of what is being bought

Generally, the acquirer may acquire a business by:

• buying at least a majority of the outstanding stock of the business
• buying all or most of the assets of the business; or
• merging with the business

Significant nontax factors in selecting the form of acquisition include whether the business is being completely or partially acquired and the amount and...