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John McGuire from the McGuire Law Firm discusses the concept of an asset purchase agreement in this video. Unlike a stock purchase agreement, in an asset purchase agreement, the buyer acquires the assets of a business. The purchasing party typically forms a new entity. The seller may dissolve their business if selling the majority of assets. An asset sale can benefit the buyer for depreciation purposes. Other pros and cons depend on the specific situation. Consult the McGuire Law Firm for questions and a free consultation with a business attorney.
