Oh, Say Can You C: Learning More About Asset Acquisitions for C Corporations

When acquiring a C corporation, you’ll need to understand the advantages and disadvantages of an asset acquisition and its tax implications. The terms are of great importance as they appear in an asset purchase agreement, and you’ll need to review each defined term. Best practice dictates that you assemble all members of your tax, legal, and accounting teams to work thorough the contract's terms. Bear in mind that in asset acquisitions, the transferor's assets and liabilities do not automatically transfer to the transferee by operation of law. Instead, it’s up to counsel to outline the terms of the specific transfers of assets and liabilities in the asset purchase agreement.

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