Asset Sales and Purchase Agreements
in West Virginia
Trump & Trump, L.C. Aids Business with Asset Sale Agreements
When a business looks to sell or liquidate all or part of its assets, it is not a simple process. A business generally involves many assets, which must be classified as capital assets, depreciable property, real property, or inventory. There are forms to evidence the sale of these assets, which can include valuations, insurance adjustments, and calculations that must take place, as well as tax forms to account for any loss or gain. The sale or transfer of business assets may take place with changes in ownership, a shift in business operations, or the sale and closing of a company. It is best practice to discuss any possible asset sales as early as possible to see if there are any tax-related advantages for the timing of the sale. Call Trump & Trump, L.C. in Martinsburg at (304) 267-7270 or Berkeley Springs at (304) 258-1414 or contact us online today to schedule a consultation regarding the proposed sale of assets.
Asset Sale and Purchase Agreements Among Businesses in WV
A purchase agreement or business bill of sale defines the terms and conditions for the purchase of the assets of another business. An asset purchase agreement details terms of the sale, such as purchase price, conditions, and escrow terms. You can also include an inventory of the assets in this agreement. Both buyer and seller agree to specific terms contained in the Asset Sale and Purchase Agreement.
Why Corporations Seek to Sell All or Part of Their Assets
A business or corporation may seek to sell assets in order to divest itself of one or more types. A partnership company may become a sole proprietorship and wish to downsize to a smaller location, remove equipment, or sell off inventory, including intellectual property, such as a business name or trademark, or part of its client lists. When a company seeks to divest an asset of value, it requires a purchase agreement, which may also be called a business bill of sale.
Asset Purchase Agreements in West Virginia – Trump & Trump, L.C.
If a business is sold and its assets transferred without the proper purchase agreements in place, other entities may question or dispute the ownership of the business. There may be other legal ramifications if the company is larger or has an intricate structure. It is best to discuss this with an attorney from Trump & Trump, L.C. so that all aspects of the asset sale may be handled appropriately.