Houston Real Estate and Business Law Firm

Sale and Purchase of Business Assets

Business Asset Attorneys in Houston, Texas

Buying or selling a business in Texas may be a demanding experience. You'll need to know what should be covered in the asset purchase agreement if you arrange the deal as an asset buy. You'll also want to be aware of any potential dangers in the contract. GK Law's skilled business asset attorneys can assist you in avoiding unexpected costs and obligations. Our Texas business law attorneys are experienced in handling different legal concerns, such as business contract disputes, mergers and acquisitions, and more.

What is an Asset Purchase Agreement?

An asset purchase agreement (APA) is a written legal document that formalizes purchasing a business or substantial commercial asset. It is also known as an asset sale agreement, business purchase agreement, or APA. It explains the deal's structure, price, limits, and warranties.

Because of the legal and financial ramifications of an asset acquisition agreement, you should contact business asset attorneys to assist you in drafting or negotiating this vital contract. They'll make sure your arrangement is legal, fair, and enforceable.

How Does an Asset Purchase Work?

When a corporation wants to buy assets from another, it informs the seller of its buying intention. A letter of intent is another name for this notice. A letter of intent marks the beginning of the negotiating process in which both parties agree on a price, conditions, contract structure, and other transactional information.

A Letter of Intent should cover the following considerations:

  • Value exchanged for the asset purchase
  • The anticipated timeline for negotiations and deal structuring
  • Escrow account requirements if any
  • Exclusivity to the buyer
  • Scope of critical warranties and guarantees
  • Prohibited buyer and seller activities
  • Termination or modification clauses
  • Other pertinent details

Your letter of intent can be as long or as short as you need it to be, depending on the people involved. However, because this contract has unique legal and financial ramifications, you should obtain counsel from business asset attorneys to help you design it. They may also assist you in finalizing the specifics of your asset acquisition agreement as the deal progresses.

Given the complexity and scope of the difficulties involved in the sale of a firm, it's vital for both buyers and sellers to hire business asset attorneys who are familiar with the process and can protect their interests. Our Houston, TX law firm can provide the legal services you need.

What Are the Parts of an Asset Purchase Agreement?


business asset attorneys

You'll need an asset acquisition agreement to regulate the transaction whether you're buying or selling an existing firm or its assets. The length of your document will vary depending on the specifics of the transaction. Regardless of the circumstances, the primary form of an asset acquisition agreement remains the same.

You might wish to include the following components of an asset purchase agreement in your paper.


The buyer and seller's names and addresses and the date of signing appear in the first paragraph of an asset purchase agreement. You should also provide a statement from both sides acknowledging the deal.


Identify keywords that will appear numerous times in your content. For example, rather than repeating the transaction conditions, you might refer to it as the "Sale" throughout the APA. Definitions of specific terminology will assist in avoiding future misunderstandings.

Purchase Price and Allocation

You should specify what the seller is offering to the buyer and any exclusions that apply in this clause. Describe the deal's structure, including the price, payment conditions, and the buyer's responsibilities. Because this part may be extensive, large lists are frequently moved to an attachment.

Closing Terms

When a deal is completed, it is referred to as closing. The closing terms should specify what is necessary to complete the purchase or sale of the business or business asset and any terms and contingencies.


Both sides will very certainly make pledges to one other. Warranties are the assurances that come with a purchase. This part is crucial for the buyer to pursue legal recourse if the vendor provides unjustified guarantees.


Under the asset purchase agreement, covenants are sub-agreements. For example, the seller may guarantee not to compete with the buyer in a specified geographic region for a set length of time. Covenants will vary greatly depending on the purchase.


In the case of a legal issue, indemnification protects both purchasers and sellers. It specifies the financial damages that one party must pay to the prevailing party and the conditions in which they must be paid, such as attorneys' fees and court expenses.


A variety of legal systems can govern contracts. For legal reasons or in the event of a disagreement, your asset purchase agreement should mention which state, country, or foreign laws control your deal.

Dated Signatures

Without both parties' dated signatures, no contract is finalized. Because the asset acquisition agreement may be signed on multiple days, leave a dateline for each signature. The document does not need to be notarized.

Your asset purchase agreement will be tailored to your specific circumstances. Hire business asset attorneys to help you with this procedure because these transactions are intricate and often in combination with other current contracts, such as partnership agreements.

Why Structure the Sale as an Asset Purchase?

You may organize a transaction to purchase or sell a business in various ways. For example, you might employ an asset buy, a stock transaction, or a merger.

In a Texas asset purchase, the buyer buys all or portion of a company's assets. Inventory, equipment, office buildings, account receivables, and customer goodwill are examples of this. On the other hand, the seller keeps ownership of the company as well as the majority, if not all, of its obligations and debt.

In many circumstances, buying an asset allows a buyer to get the valuable components of a firm without taking on the troublesome or unproductive portions. Because debt and liabilities are often eliminated from asset purchases, pre-purchase due diligence may take less time and effort.

Asset buyers also benefit from various tax benefits and more flexibility than other forms of business transactions.

What Are the Advantages and Disadvantages of an Asset Purchase Agreement?

If you're thinking about using an asset purchase agreement to formalize the sale of a firm or asset, you should weigh the benefits and drawbacks first. Examine the advantages and disadvantages listed below.


  • You can define how you want the transaction to be structured
  • Ownership over specified assets is only transferred, which can mitigate legal issues
  • You avoid problems with minority shareholders
  • Assets can be sold at fair market value (FMV)
  • Both parties avoid running into opportunities and instead attract serious buyers and sellers

For specific organizations, the benefits of an asset purchase agreement are significant. Finally, and most importantly, it gives reassurance and understanding among the people involved while safeguarding their legal rights.


Although asset purchase agreements have many benefits, they also have a few drawbacks, such as:

  • You will need to engage in the retitling process, which can be costly
  • Employment contracts may require review and renewal
  • Specific permits and licenses may not transfer to the buyer without reapplication
  • Assets sold well below FMV may result in insufficient capital for the buyer

The choice between an asset purchase agreement and other legal documents, such as a stock purchase agreement, should be made with the help of knowledgeable business asset attorneys. Otherwise, you risk making legal errors that will harm you in the future.

What is Asset Protection?

Asset protection is an important aspect of any estate plan, particularly for business owners, individuals who own several homes, and anyone who has amassed a substantial amount of wealth. While no one wants to consider that bad things can happen to them, such as bankruptcy, divorce, or a lawsuit, it's critical to be proactive when it comes to protecting your business and your estate.

Why Should You Hire Business Asset Attorneys?

Our Business Asset Attorneys Are Knowledgeable Legal Advocates..

The first reason to hire an attorney is that they are knowledgeable. Business asset attorneys are experienced in the industry and have the legal understanding needed to accomplish the deal.

Business asset lawyers, for example, will know what documentation is required to guarantee that the interests of both the buyer and the seller are effectively represented and safeguarded. An Asset Purchase Agreement, Certificate of Incumbency, Non-Compete Agreement, and a range of additional corporate and financial paperwork are required in most transactions.

Engaging business asset attorneys to assist you with the sale of your firm will guarantee that all of the necessary documentation is in order and done correctly, ensuring a seamless transaction.

We Will Protect You and Your Business.

Second, protection is critical, particularly when purchasing or selling a firm. Those selling their business without the help of an attorney are more likely to be taken advantage of, forget a condition releasing them from all duty and debt, or overlook a contract that exposes the selling party to the danger of a lawsuit or open taxes and liens.

Protection can also be found in a Non-Compete Agreement, which prevents a company buyer from competing with the seller if the seller decides to create a comparable firm close enough to compete with the buyer.

To give the protection mentioned above to the parties to the transaction, business asset attorneys would draft a Non-Compete Agreement that is both appropriate and legally binding.

We Provide Efficient Legal Services.

The most significant feature of engaging an attorney when purchasing or selling a business, especially if one of the parties is already employing one, is efficiency. Business asset attorneys will be able to communicate terms, create agreements, negotiate conditions, and transmit information swiftly on behalf of their clients.

For example, at GK Law, all necessary documentation for the buyer or seller (depending on who is being represented) is completed promptly after the engagement, allowing the transaction to be finalized as swiftly as possible for both parties' convenience.

Let Our Business Asset Attorneys Help You

Choosing the best business asset attorneys is crucial to accomplishing your personal and professional objectives. GK Law is proud of the connections it has built with its clients due to the aggressive and focused pursuit of its objectives.

We use our knowledge to suit our clients' demands. GK Law is noted for its success in commercial real estate transactions, business acquisitions and sales, partnership formation and disputes, complicated business planning, consulting, strategy, and direction to small and mid-sized firms.

GK Law is a boutique firm with the flexibility, creativity, and commercial acumen to assist our clients in achieving their objectives. If you have business law concerns or eminent domain concerns, schedule a consultation with our law firm today.



Success Stories

  • GK Law PLLC has provided exceptional legal services for my USA and International business operations. Attorney Gagan Khan and her legal team are experienced and knowledgeable attorneys. GK Law Firm has counseled my company through very critical business decisions over the last 2 years. As a result, my company is positioned to grow and experience great success. Without hesitation, I highly recommend GK Law PLLC to provide you the legal services you need and deserve to be success. Dr. Georege W. Hutchinson, Founder/CEO Mandala World Global Operations.

    Dr. George H.

  • GK is as assertive as it gets! I had a great experience dealing with attorney Gagan Khan. They get the job done. Communication is key and they keep me in the loop at every point. They found a way to really think outside the box and help me with my case. I highly recommend GK. I hope I don’t need legal assistance in the future, but if I do I know I’ll be coming back to GK as they are a team I can count on.

    Alizeh R.

  • I highly recommend GK law to anyone who seeks legal help. Both Attorney Gagan Khan and Martin Thomas are very professional and their skills are at the top of their peers. Not only they are very detailed at collecting evidence for discovery, they are also quick thinkers to argue for the best interest of their clients. Moreover, they also have a big heart to extend their charitable help beyond their legal responsibility. I am really grateful that I have found GK law to represent me in my car accident case against a big bully insurance company. I will definitely come back to seek their legal help if I ever need again.

    Lei Z.

  • I had a great experience working with GK Law on my case. The team is very communicable and responsive. They answered any and all questions I had, and within the hour usually. You can trust GK Law to fight your case to the best of their abilities, giving you a peace of mind and remove stress from an already stressful situation. I highly recommend

    Farhan O.


Call Us today



We are here to help 
you succeed!

Footer Form

Copyright © 2024 GK Law. All Rights Reserved | Powered by Advantage Attorney Marketing & Cloud Solutions