When you decide to buy a business, you essentially have two alternative paths you may travel. You may utilize a Stock Purchase Agreement and buy all the shares or a majority of shares of a company, which simply allows you to become the owner. Conversely, you may wish to consider another route, the Asset Purchase Agreement.
Perhaps the greatest advantage to the Asset Purchase Agreement is the ability to purchase the assets, liabilities, and other aspects of an existing business a la carte. For the purchaser of an existing business this is a beautiful thing. The purchaser does not have to take anything from the business that they do not want such as employees and liabilities. The purchaser also does not have to pay for anything that they do not want such as accounts receivable and existing bank accounts.
In the end, purchasers who do not wish to pay for those assets of a business that they do not want, or those who want to take over an existing business on their own terms, should consider the Asset Purchase Agreement. Additionally, under certain circumstances there may even be significant tax advantages as well. If you are interested in discussing how an Asset Purchase Agreement could be of use to you or your business, contact the Gabriel Law Office, PLLC and we will counsel you in your decision. Should you choose to utilize the Asset Purchase Agreement; the Gabriel Law Office, PLLC can then tailor such an agreement to meet your needs and specifications. Let us help make sure that legal issues are not an issue for you or your business.