There are two main ways to purchase a private company: through a stock purchase or an asset purchase. In a stock purchase, the buyer acquires everything related to the business, including its shares or LLC units, as well as all its assets and liabilities, such as property, equipment, contracts, and accounts receivable. Buyers often avoid stock purchases because they inherit all liabilities, but these risks can be mitigated with insurance and specific carve-outs. From the seller's perspective, a stock purchase is cleaner and simpler, though asset purchases are more common due to their flexibility and lower risk for buyers.

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