Asset Purchase vs Share Purchase in New Zealand

A business can change hands through an asset purchase, a share purchase or another negotiated structure. The choice affects what you acquire, what liabilities may remain and how the transaction is documented.

Asset purchase

The buyer acquires selected assets such as goodwill, stock, equipment, intellectual property and specified contracts. This can make the scope clearer, but contracts may need consent and some liabilities or obligations still need careful review.

Share purchase

The buyer acquires the shares in the company, so the company continues to own its assets and obligations. That can make continuity easier, but it also means historical liabilities, tax issues, contracts and compliance need particularly thorough investigation.

The price is not the whole decision

Compare GST treatment, debt, working capital, employee obligations, warranties, consents, tax losses, licences and the practical ability to transfer customers and suppliers. A cheaper headline price can carry more risk.

This is a structure question, not something an online calculator can decide. Use OpenBiz to understand the business economics, then ask a New Zealand commercial lawyer and accountant for advice tailored to the transaction.