An asset purchase agreement is an agreement between a buyer and a seller that finalize terms and conditions related to the purchase and sale of a company’s assets. It’s important to note in an asset purchase transaction, it is not necessary for the buyer to purchase all of the assets of the company. In fact, it’s common for a buyer to exclude certain assets in an asset purchase agreement. Provisions of an asset purchase agreement may include payment of purchase price, monthly installments, liens and encumbrances on the assets, a condition precedent to the closing, etc. An asset purchase agreement differs from a share purchase agreement (SPA) where company shares, title to assets, and title to liabilities are also sold. You could view a sample of such an agreement hereunder, though some parts of the document are omitted. Alternatively, you could call us for a customized agreement including legal advice associated with the same.
