Asset purchase (also known as a business purchase) definition

An asset purchase enables the buyer to purchase only those assets and liabilities that it requires and expressly agrees to acquire. When the acquisition is completed, the buyer becomes the owner of those assets and subject to those liabilities, leaving unwanted assets and (more importantly) liabilities behind in the hands of the seller. Asset purchases allow a buyer greater flexibility to pick and choose and largely avoid the risk of it acquiring unwanted liabilities. It does not acquire the company carrying on the business. It is also commonly known as a 'business purchase'.