Asset Purchase and Sale Transactions

An asset purchase or sale transaction is the purchase of individual assets and liabilities. While there are many considerations when negotiating the type of transaction, tax implications and potential liabilities become the main concerns.

Asset deals are a type of merger and acquisition transaction. The buyer completes the transaction by providing the selling company with consideration for some or all assets. This differs from stock purchases because it involves assets not stocks.

Some examples of assets that can be purchased include both tangible and intangible items. This includes equipment and other inventory, and also customer lists and the like. 

Another key difference between asset deals and stock deals is that after the transaction, the seller’s company does not cease to exist.