Assets are important properties of a company which will have a high market value when it is sold. Some companies allow business minded individuals to purchase a company asset. This way, the purchaser will have some of the company’s liabilities and resources. There are a lot of benefits in purchasing assets, including the tax advantages that the purchaser will have.
An Agreement Form is used when transacting any type of purchase that involves a large amount of payment and rights of a business. As for purchasing assets, an Asset Purchase Agreement Form will outline the company’s terms and conditions regarding the limitations of the purchaser to use the assets.
Asset Purchase and Sale Agreement Form Sample
Stock Asset Purchase Agreement
Example of Asset Purchase Agreement
Asset Purchase Agreement
What is an Asset Purchase Agreement Form?
An Asset Purchase Agreement Form or an APA is a contract for the purchaser and the owner of the assets. Documenting the transaction is very vital to know which assets are still under the company’s care. Although assets are considered as groups of properties, it is not required for the purchaser to buy every single asset of the company. The purchaser has all the right to choose which type of asset will benefit his finances and investments. Two of the main purposes of having an Asset Purchase Agreement Form is to define and control the behavior of the involved parties.
Two Important Areas in an Asset Purchase Agreement Form
Before signing the purchase agreement form, make sure that these two are clearly stated on the document:
The Recitals for the Agreement. This will state the company’s details including the types of services and products they are contributing to the market.
The Assets. The agreement should state which assets are included and which are excluded for the purchase.
If you are purchasing a specified long-term asset, such as a land area, you may also consider using a Land Purchase Agreement Form in transacting with the company. This form will contain the land’s dimension and characteristics.
Free Amendment Asset Purchase Agreement
Business Asset Purchase Agreement
Confidential Asset Purchase Agreement
Summary Asset Purchase Agreement
Asset Purchase Agreement Contract Form in DOC
Tips for Drafting an Asset Purchase Agreement Form
- The statements on the agreement form should be concise and straight-forward.
- The company who sells the asset must have an accurate description of the asset in the form.
- Assets which are intended to be left under the company’s care and liabilities should be stated under the “Excluded Assets Section”.
- The details regarding the payments should include how the purchaser will pay the amount and the other fees associated with purchasing the assets.
- The company’s assets should be categorized into groups: tangible and intangible assets.
- Intangible Assets includes the company’s patents and logos, while the tangible assets are the buildings and land properties.
- The shareholders should be part of the contract since they also contributed to the company’s success.
- Terms and conditions required by the company should be reviewed by the purchaser just in case that there are areas which needs some revisions.
A form which is somehow similar to an Asset Purchase Agreement is a Real Estate Purchase Agreement Form. This also covers the information about the property to be sold to the purchaser. Although, compared to an APA, this agreement requires the purchaser to pay for the whole real estate property of the owner.
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