Asset Acquisition

Asset acquisition, in the context of mergers and acquisitions law, refers to the process where one company purchases specific assets of another company rather than acquiring the entire company. This can include physical assets like equipment and real estate, or intangible assets like patents and trademarks. The acquiring company aims to gain value or strategic advantages from these assets, while the selling company can streamline operations or raise capital. The transaction is negotiated through a purchase agreement detailing the assets involved, terms of sale, and any liabilities retained or transferred.