“Negotiating an Asset Purchase Agreement with the Seller’s Interests in Mind," Automotive Buy Sell Report

Articles / Publications

In an article published on April 24 in Automotive Buy Sell Report, George Taylor explores acquisition agreements from a seller’s perspective, specifically providing insight on the pricing of assets.

When dealing with purchase price computations in an asset transaction, he outlines the following considerations for sellers: purchase price calculation, parts inventory, fixed assets, and assumed contracts.

One of the more damaging provisions from the seller’s perspective relates to the returnable parts standard, a short-hand method in every acquisition agreement providing that buyers were required to purchase only those parts that were returnable to the manufacturer under current return programs. As time passed however, many parts are non-returnable from the moment they are purchased by the seller.

A second issue relates to the treatment of those parts not considered returnable. In most buyer-oriented agreements, parts, where no purchase price is assigned, are lumped into the other assets category and are considered purchased as part of the blue sky. In other words, the buyer receives them for free.

For the full article, you may click here.

Related Professionals

Burr
Jump to Page
Arrow icon Top

Contact Us

Cookie Preference Center

Necessary Cookies

Always Active

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.