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John McGuire from the McGuire Law Firm discusses the basics of an asset purchase agreement in this video. Unlike a stock purchase agreement, in an asset purchase agreement, you are buying the assets of a business. The purchasing business typically forms a new entity. The seller usually dissolves if selling the majority of their assets. Asset sales can benefit the buyer for depreciation purposes. There are various advantages and disadvantages based on the party (buyer or seller). For questions or a consultation, contact the McGuire Law Firm and speak with a business attorney.
