Asset Deal
In an asset deal, the buyer acquires specified assets and contracts rather than shares in the company.
An asset deal identifies the assets, rights, and, where applicable, liabilities to be transferred. The selling company continues to exist. Transferring contracts may require the other parties’ consent.
The buyer’s obligations depend on applicable law as well as the agreement. An asset deal therefore does not automatically exclude the transfer of risks. Tax consequences require separate assessment for the buyer and seller. This structure may be used to sell an individual business unit. See also Share Deal.
Related terms
In an asset deal, the buyer acquires specified assets and contracts rather than shares in the company.
Related terms