2 Legal structures - a Company is bought to Control or benefit from assets or for
interests in the equity. In an asset purchase an entire Company is not bought but maybe a Division. The process can be difficult to Isolate assets and liabilities pertaining
only to that one asset, transference of licenses and Permits, transferring employees and utiliting the assets upon start up require skill and Talent. It is also important to
scrutinize the buyer, will they want to compete for the same pool of customers?
Stock (same effects and transaction costs as described above).
Shares in treasury: it increases financial slack (if they don’t have to be repurchased on the market), may improve debt rating and reduce cost
of debt. Transaction costs include brokerage fees if shares are repurchased in the market otherwise there are no major costs.