Purchasing A Business Or Business Assets
An asset purchase contract defines the assets and liabilities to be sold when one company purchases another. Assets can be office equipment, real estate, intellectual property, production machinery, professional services, contracts, etc., and certain assets may be excluded from the deal. Frequently liabilities are connected to assets and travel with them when ownership changes.
Asset purchase contracts are complex instruments that spell out the exact authority of the seller to dispose of the assets listed, that the listed assets are not encumbered in some other way, that their value equals the purchase price, and other variables. The closing date, the effective date and how business is to be conducted in the interval are also clarified.
Full disclosure is required of both parties and verification of these representations may be needed with accompanying indemnity provisions. It is vital to retain a skilled Houston business law attorney to ensure that all requirements are met and the deal is brought to a successful conclusion without the threat of future litigation.
My office has the necessary experience in asset purchase contracts and can provide advice and representation through this entire process.
Asset Purchase Contracts In The Houston Area
Frequently asset purchase contracts dictate behavior that must be adhered to by the parties. It may prohibit the parties from discussing the deal publicly; it may prevent the seller from engaging in competitive activities or disclosing business information. Clauses regarding the termination of the contract are very important. For instance, if one of the parties shows malfeasance or if due diligence is not performed or if the closing is unduly delayed, the contract should allow for termination. My office can advise you about the types of clauses that you need to include that protect your interests throughout this transaction.
Business purchases are frequently made with this type of contract and its very popularity is testimony to its usefulness. However, an improperly drafted contract can lead to numerous problems, some of which can result in litigation. My law office has the experience necessary to ensure that an asset purchase contract meets the needs of both parties so that a successful business deal can be made.
Call 713-936-9553 now to schedule a confidential consultation.