Asset Acquisition Strategy

You have a beard trimming business that specializes in former ZZ Top members and "reform" Amish. There’s another beard trimming business around the corner close to going broke. They need money. FAST. You don’t want the business itself, but you do want 10 of their superior trimming gadgets, and perhaps a couple of their ultimate luxury massage chairs.

In this instance, you’re using a simple form of an asset acquisition strategy. You’re buying assets, but not stock or ownership in the company itself. The bigger reason you really care about this being an ASSET acquisition of things INSIDE the company rather than the entire corporation? Liability. You have no idea if in the past they’ve poked Amish people, ZZ Tops and other hirsute folk who are all getting together a giant class action suit against you.

If you only buy their trimmers and...well, assets…then the corporate liability doesn’t attach to you. It remains with the owners who continue to own; all you’ve bought there the products inside of it. Much safer way to travel if you have pockets that are deep.