What is the primary advantage of an asset sale for the buyer?

The primary advantage of an asset sale for the buyer lies in the acquisition of a stepped-up basis in the seller's assets. This means that the buyer can revalue the purchased assets to their fair market value at the time of the sale. As a result, this higher basis can lead to increased depreciation deductions and potentially lower taxable income for the buyer in future years.

When a buyer purchases assets instead of shares, they essentially get to reset the tax values of the assets despite the historical carry-forward of tax liabilities. This tax benefit can be substantial, providing a significant incentive for buyers to pursue an asset sale instead of a stock sale.

The other choices do not capture the core advantage relevant to asset purchases. For instance, avoiding tax implications is not accurate since asset sales can still incur taxes, and stocks would not be immediately acquired in this transaction. Additionally, the issue of avoiding double taxation is generally more pertinent to stock sales rather than asset sales, where tax complications for the company can arise differently. Thus, the concept of a stepped-up basis stands out as the primary financial benefit for buyers engaging in asset sales.