Asset Purchase Agreements

Comprehensive Legal Guidance on Asset Purchases

Business Purchase & Acquisition Attorneys

Acquiring a Business Through Asset Purchase

When buying or selling a business, one of the key issues to consider is how to structure the acquisition or sale. Two of the primary methods to be considered when purchasing a business are (1) asset purchase agreements or (2) stock purchase agreements. Depending on your business’ specific needs and goals, each method may offer specific advantages and disadvantages. Asset purchase agreements are just that, namely, the acquisition of the business through the purchase of that business’ assets, which could include things like inventory, equipment, accounts receivable, cash, capital, real estate, etc. Stock purchases are more indirect, and in such cases, a prospective buyer might be considering purchasing stock which can allow for control over the business’ operations, rather than direct ownership of assets- the assets, in such a case, are collectively “owned” by the shareholders, whoever they may be. In small closely held businesses, there could be less of a distinction between an asset purchase agreement acquisition versus a stock purchase agreement acquisition. Both methods should be carefully considered as each has specific benefits and ramifications for the seller and the buyer. To learn more about acquisition agreements for the purchase or sale of a business/corporation, please read this free resource.

As business lawyers and corporate counsel for small to large corporations, and with over four decades of combined experience, our law firm is here to deliver sound representation and guidance related to the sale of your business or purchase of another business. Edelboim Lieberman Revah Oshinsky PLLC can effectively guide you through the acquisition or sale of a business to protect your interests.

Contact our team at (305) 768-9909 for a confidential, free consultation.

Advantages of Asset Purchases and Sales

With an asset purchase or sale, the buyer purchases specified assets and liabilities. An asset purchase can offer the following advantages:

  • Greater flexibility in determining which assets and liabilities to purchase;
  • The ability to avoid assuming certain liabilities, minimizing risk;
  • Potential tax savings; and
  • Avoiding the acquisition of any unwanted aspects of a business.

Asset purchase agreements can be complex because they may require third-party authorization in order to transfer title to assets that might be encumbered. Asset purchases may also be time-consuming as the seller and buyer will likely negotiate to determine which assets and liabilities will be transferred and whether there can be other legal ramifications for the buyer and seller. When buying or selling the assets of a business it is very important to be represented by effective counsel that has experience with such transactions. Most asset sales or asset transfers can be effectively closed with a proper due diligence period and effective legal counsel.

Call an Asset Purchase & Sale Lawyer at Edelboim Lieberman Revah Oshinsky PLLC

For experienced counsel to ensure the protection of your interest as a buyer or seller, contact our Miami business lawyers at (305) 768-9909.

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