The Ins And Outs Of Asset Purchase Transactions

Law360, New York (July 24, 2013, 1:59 PM EDT) -- A buyer and seller have great flexibility in an asset purchase transaction in terms of the structure of the purchase price and the form of the purchase price.

With regard to form, the buyer and seller can agree on cash, buyer stock, buyer promissory notes, property of buyer (including licensing of technology), assumption of seller liabilities and contingent payments (also known as "earnouts"). With regard to structure, any or all of these forms of consideration can be paid at closing, at some later date, or at...
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