What is an Asset Purchase Agreement?
An asset purchase agreement is used to sell the assets of a company, as opposed to selling the ownership interests. Many parties contemplating purchasing a business are sometimes hesitant in doing so because they want to avoid taking on liabilities, both known and unknown. As a result of this concern, many companies opt to use an asset purchase agreement. By using this agreement, only the assets are purchased, leaving any issues the company may have, such as taxes, lawsuits, and outstanding bills. Assets are not limited to only tangible items such as equipment and machinery. Assets can also include rights to licenses, exclusive use of the business name, etc. As a result, an asset purchase agreement can provide certainty to a purchasing transaction.
Benefits
- Any business that is looking to buy or sell the business with restricting the number of interested parties.
- Businesses that may have liabilities or businesses looking to avoid any liabilities held by a company holding assets of interest.
A business owner or shareholder who is looking to sell all or a portion of their business’ assets would benefit from an asset purchase agreement. Also, if the current company has any legal issues or other problems, it may be beneficial to leave those liabilities with the company and simply purchase the assets.
Completion Time
Approximately 2-3 business days*
*Depending on Specifications
Why our firm?
An asset purchase agreement is a delicate agreement that must include various clauses to protect buyers and sellers alike, such as non-compete provisions and confidentiality terms. Our Firm understands the intricate nature of this agreement and is dedicated to providing our Clients with an asset purchase agreement inclusive of all of their needs. We will ensure that your interests are protected when drafting your asset purchase agreement by including the complete asset list contemplated for the agreement and limiting the liability exposure as necessary.
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