Asset Purchase Agreement
An Asset Purchase Agreement (APA) is a contract used in corporate mergers and acquisitions to transfer specified assets from a seller to a buyer, rather than transferring stock in the target company. It typically defines which assets are included, which liabilities are not assumed, the acquisition price, and the closing conditions.
Example: Example: In a sale of a software business, the APA would specify that the buyer acquires licenses, customer contracts, and related intellectual property, while liabilities not listed as assumed remain with the seller.
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