Asset Purchase / Sale

CALGARY ASSET TRANSACTION LAWYER

When a corporate transaction is structured so as to acquire some or all of the assets of a company, partnership or sole propreitorship, and not the business entity itself (whether it be a corporation or partnership), than one has the basis for an asset purchase and sale. It is a process that strives to reduce the assumption of risks and liabilities, by attempting to acquire only specific components of the existing business (as opposed acquiring every aspect, including all liabilities, known and unknown, being the proverbial skeletons in the corporate closet). But in undertaking such a partial cleansing of the proposed transaction, there is typically an accepted reduction in the purchase price, as the risk has been reduced (as it is intended to remain with the seller), yet the underlying work still awaits.

Asset transactions can be somewhat more straightforward than share transactions, given their objective purging of a broad array of liabilities and issues associated with the selling business, nevertheless this is no assurance that the legal work will be complex and challenging, especially when they are allowed to become bogged down by differing perspectives and interpretations of the transaction's form and objectives. This can make the process and/or the results extremely expensive, especially when legal counsel is incapable of managing and navigating the process so as to effectively achieve the client's objectives. This is a critical element that is all too frequently in short supply, unless the lawyer has the capacity to understand business and transform theory into a workable and profitable reality.

To understand the value of retaining the services of an experienced asset transaction lawyer when buying or selling a business' assets, contact lawyer Christopher R. Neufeld at Chris@NeufeldLegal.com or 403-400-4092. There is far too much at stake to not get the appropriate legal counsel and thereby make wiser and more effective decisions when undertaking an asset-based transaction.