Asset Purchase
/ˈæsɛt ˈpɜrtʃəs/
Definitions
- (n.) A transaction in which a buyer acquires specific assets and liabilities of a business, rather than its stock or equity interests.
The company completed an asset purchase to acquire the target firm's equipment and inventory without assuming its debts.
Forms
- asset purchase
- asset purchases
Related terms
See also
Commentary
Asset purchase agreements specify the exact assets and liabilities transferred, allowing buyers to avoid unwanted obligations; drafting requires careful identification of assets included and excluded.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.