Our small corporation accepted an offer for another corporation to buy 50% of our company.

This would be through purchase of 50% of stock

Question is

Does outstanding accounts receivables and accounts payable have to be brought up to date of close on sale. Since 100% owned then?

Or does everything simply continue as normal?

Please reply

Joe

I would imagine that the terms would be reflected in the offer... such as if they are purchasing assets only or liabilities as well, otherwise it could be interpreted that the new company is buying half of the accounts payable and receivable as part of the package.

On the surface, it seems like you would each have half of the accounts payable and half of the receivables after the stock deal takes place.