Asset purchases require the acquiring company to buy all or a portion of the target company's assets and to assume at least some of the target's liabilities in exchange for cash or stock.

Question

Quizplus · Accepted Answer

Asset purchases involve the acquiring company buying all or a portion of the target company's assets, but they do not necessarily involve assuming any of the target's liabilities unless specifically agreed upon in the transaction.

Asset Purchases Require the Acquiring Company to Buy All or a Portion