As Your Contract Lawyer has explained previously (here and here), in addition to being utilized for the purchase of a company, a purchase and sale agreement can be used for the purchase of some or all of a company’s assets. These assets can be as simple as office furniture and equipment from a small business or can be as complex as onshore oil and gas facilities as was the case when Freeport-McMoRan Inc. agreed to sell all of its onshore oil and gas properties located in the state of California to Sentinel Peak Resources California LLC. In addition to setting the purchase price as both a lump sum of $592 million at closing and $50 million per annum from 2018 through 2020, the purchase and sale agreement signed by both companies provided that Sentinel will assume “future abandonment obligations associated with the properties, which had a book value of approximately $0.1 billion at June 30, 2016.”
Whether you are looking to sell some or all of your business’s assets or are instead interested in having a buyer purchase your company, from which sale you can still include or exclude particular assets as you wish, Your Contract Lawyer can help you assess which type of sale would make the most sense for you and your business depending on the circumstances particular to your situation. Please contact our office for a consultation by reaching out either via phone or through the contact form on this site.