What Is a Share Sale?

A share sale occurs when a buyer purchases the shares in a company, meaning they acquire the entire legal entity.

This includes all assets and liabilities — known and unknown.

How It Works

Instead of transferring equipment, leases and contracts individually, ownership of the company itself changes hands.

This structure is more common in:

● Larger enterprises

● Established multi-location businesses

● Companies with complex contracts

Example

If someone acquires a professional services firm in Sydney structured as a Pty Ltd company with long-term government contracts, a share sale may preserve continuity.

Risk Considerations

Because the buyer inherits the company, they also inherit:

● Outstanding debts

● Tax obligations

● Legal risks

Extensive due diligence is critical.