Assets Acquisitions: Overview

by Practical Law Corporate & Securities

This Note offers a comprehensive overview of the asset acquisition process, focusing on the purchase of a business's assets. It outlines critical steps such as due diligence, obtaining necessary consents and approvals, tax implications, and the preparation of essential documentation. The Note emphasizes the flexibility asset acquisitions provide buyers in selecting specific assets and liabilities, contrasting with stock acquisitions where all assets and liabilities are transferred by default. It also discusses the complexities involved, including the need for third-party consents and regulatory approvals, and the potential for successor liability. The Note explores the implications of double taxation for sellers and the strategic use of tax attributes. Additionally, it addresses specialist areas such as antitrust compliance, employee issues, and the handling of intellectual property, underscoring the importance of engaging with legal experts throughout the acquisition process.