Omni Health Inc (OMHE)

[mattsinvestmentclub]

THE STORY OF MALECON BECOMING





https://www.inc.com/jim-schleckser/why-you-should-buy-assets-of-a-business-instead-of-its-stock.html
could management be setting up an asset only transaction to remove all previous known issues?

That’s why the better way to buy a company is to just acquire its assets rather than its stock. This essentially means that you create a new corporate entity-;call it Newco-;which then acquires all of the assets of the company you’re buying. You will hollow out the old business to build the new one. That includes employment contracts, intellectual property, machinery, and long-term leases. Even the name and brand equity would transfer over to the new business. You purchase all of the assets needed to operate the firm on a going forward basis.

If I was buying Coca-Cola, for example, I would want to acquire the incredibly valuable brand otherwise I would just be purchasing fizzy brown water company.

The key known and unknown liabilities, however, stay with the old business. While you might have to assume certain minor liabilities like any accounts payable owed to suppliers, the big risky backward-looking liabilities remain the responsibility of the seller.