Asset Purchase Agreements

One way to expand a business is through asset purchase. This is a process by which a person or business buys a portion of the assets of another business. This could include medical equipment, contact information, product development, real estate, or any other business property or information. If anything less than the entire business is purchased, it is typically done through an Asset Purchase Agreement.

An Asset Purchase Agreement is a specialized type of contract. Because each business and transaction is different, each Agreement is different. These can be structured in any way that works best for the parties: lump sum payment, payment over time, trade in kind, or any other agreement to which the parties can arrive. Because of this, each Agreement requires the involvement of an Attorney to make sure that the transaction is properly documented and clear to all involved. An Attorney can also help distinguish between typical terms and things that you would like to negotiate.

Asset Purchase Agreements tend to be lengthy documents to protect everyone. This also helps spell things out very clearly so the exact terms of the Agreement are not in doubt. So, while an Agreement may be daunting, ask your Attorney to boil it down and identify the areas that concern you and those that will most affect your business going forward.

If you want to contact Owens & Perkins regarding drafting or reviewing an Asset Purchase Agreement, click here.