Whether you are looking to buy or sell a business, one of the most important decisions you will face is how the transaction will be structured. Business sales are typically completed using one of two legal strategies: an Asset Purchase Agreement or a Stock (or Membership Interest) Purchase Agreement.
At Gateville Law Firm, our Kendall County, Illinois business law attorney helps business owners and entrepreneurs navigate these complex legal and tax decisions to ensure a smooth, profitable transition.
What Is an Asset Purchase Agreement?
An Asset Purchase Agreement (APA) is a legal contract in which the buyer purchases specific assets of the business rather than buying the company as a whole.
Assets typically involved in a business sale include equipment and other inventory, real estate, customer lists, intellectual property, goodwill, and contracts. The buyer usually does not assume liabilities unless they are specifically included in the agreement. This gives buyers more control over what they are acquiring.