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In this video, John McGuire of the McGuire Law Firm discusses asset purchase agreements, comparing them to stock purchase agreements. In an asset purchase, one business buys the assets of another, usually involving a new entity formation by the buyer. The selling business may dissolve if it sells most of its assets. Asset sales can be advantageous for the buyer, as the purchase amount can be used for depreciation. Advantages and disadvantages vary based on whether you are the purchaser or the seller. For further questions about asset purchase agreements, viewers are encouraged to contact the McGuire Law Firm for a free consultation with a business attorney.
