Business Law and Asset Purchase Agreements
Operating a small business can be stressful. Business owners often take on multiple roles at once. When legal issues arise, this can add stress and detract from running the company. That is why it is important to rely on business litigation attorneys to assist with legal transactions, including asset purchase agreements.
Business litigation attorneys from Froerer & Miles, which serves Ogden, UT, Layton, UT, and surrounding areas, have a thorough understanding of commercial law. They work with small business owners to navigate business law transactions and asset purchase agreements so that their clients can focus on running their businesses successfully.
What Is an Asset Purchase Agreement?
An asset purchase agreement, which can also be referred to as an asset sale agreement or business purchase agreement, is a legal document that formalizes the purchase of an entire business, or certain assets of a business. Property that may be purchased through an asset purchase agreement includes:
- Business licenses
- Physical property
- Intellectual property
An asset purchase agreement may also be included as part of a larger transaction, such as a joint venture.
What Should Be Included in an Asset Purchase Agreement?
Asset purchase agreements are customized to the specific situation, so they vary in length and each may include different components. However, most asset purchase agreements should include certain key terms, such as:
- The names and addresses of all buyers and sellers
- Identification of the asset(s) being purchased
- The purchase price and payment terms for purchased assets
- Closing terms for when/how the transaction is formalized
- Any warranties that will be included with the purchase
- Any purchase disclaimers
- Indemnifications, or legal protections, for both parties in the event of breach
- Any covenants or sub-agreements
- Dated signatures from all parties
Why Use an Asset Purchase Agreement?
Whether selling a business or a business asset, it is a good idea to use an asset purchase agreement. An asset purchase agreement allows involved parties to dictate the terms of the transaction so that they have complete flexibility over the purchase/sale. Furthermore, the document ensures that assets are sold at fair market value and that the purchase is enforceable under the law.
Do I Need an Attorney to Devise an Asset Purchase Agreement?
Technically an asset purchase agreement can be created without the assistance of a lawyer. However, it is highly advisable to hire a small business litigation attorney when composing a purchase agreement. Small business attorneys understand commercial laws for their state and can ensure that any purchase agreement is legally enforceable. Any errors in these contracts can lead to litigation and/or financial losses, which is another reason it is so important to have the document overseen by a legal expert.
Contact Froerer & Miles
If you run a small business, the services offered by the business litigation attorneys at Froerer & Miles can prove invaluable. To learn more about how we can assist you with an asset purchase agreement or other legal transaction, send us a message online or call our Ogden law firm at (801) 621-2690 and request a consultation.