Minneapolis business and corporate organizations attorney, Molly Gherty, discusses identifying the assets, the cost, how the assets will be purchased, and when the deal will be closed, as key asset purchase deal components.
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Asset-purchase transactions can be very simple or very complex. It really depends on the circumstances of your particular deal. But in any deal you need to identify what, in fact, are the assets that someone is purchasing? How much are they going to be purchasing those assets for? How are they going to be purchasing them? It might be by promissory note, it might be by cash up front. And then you also need to know when do you intend to close the deal? So when is title to the assets going to pass from the current owner to the new owner? So those are some very basic provisions that you’ll see in any asset purchase agreement, but there are also others that you see very commonly in business deals. And those might be a non-solicitation agreement, a non-compete agreement, or even a confidentiality agreement.