This form is an Asset Purchase Agreement. The seller agrees to sell to the buyer certain assets which are listed in the agreement. The form also provides that the buyer will not be responsible for any unfilled orders from the customers of the seller.
Asset Purchase Buy With Lease In Houston
Category:
State:
Multi-State
City:
Houston
Control #:
US-00419
Format:
Word;
Rich Text
Instant download
Description
Free preview
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FAQ
The biggest difference is that an SPA is the sale of all shares, and an APA is the sale of selected assets. Therefore, they are both different transactions and have different procedures.
Flexibility in Structure: Asset purchases offer more flexibility in structuring the transaction and financing. A buyer can negotiate and structure the deal based on the specific assets being acquired, so they can structure the transaction to better align with their financial capabilities.
Disadvantages of Asset Sale The seller is subject to a double layer of taxation. Transferring assets may be more complicated. Agreements tied to certain assets may need to be renegotiated.