Assets and Purchase Price
Which assets are to be sold?
You must select at least one asset with a non-zero value.
Base Purchase Price: $0.00
A total purchase price greater than $999,999,999,999.99 may not display correctly in your final document.
Ensure your amounts are entered correctly.
Frequently Asked Questions
Why does asset price need to be allocated?In a sale of assets, the assets to be included in the purchase of your Business should be specified to ensure that there are no misunderstandings regarding what is to be included or not included in the sale.
In addition, by allocating a portion of the selling price to each asset, there will be certainty as to how the Purchaser and Seller will file their taxes in regards to those assets. Both parties must adhere to your Agreement when filing taxes.What is meant by goodwill?Goodwill is the value of your good reputation in the marketplace. Goodwill may have considerable impact on the continued success of your Business after the transfer of ownership.
An accurate monetary value representing goodwill may be difficult to determine. If the Seller wishes to include goodwill as part of the sale price then a qualified accountant should be used to find a fair value for goodwill. For tax purposes, you need to be able to justify the value you assign to goodwill.
In some sectors where there are minimal tangible assets, the goodwill of the company can represent a significant portion of the purchase price.What is meant by books and records?Books, records and files of your Business will include all the information required for a smooth transition in ownership and to continue normal operations after the closing date. This includes all accounting files of your Business and also includes marketing information such as client lists and market research information and all files related to product research and development as well as production and maintenance history.
Note that a copy of accounts receivable up to the closing date may be retained by the Seller to facilitate collection of outstanding accounts.What is meant by my business contracts?Business contracts such as sales contracts related to the core activity of your Business would typically transfer to the Purchaser after closing. Business contracts such as partnerships in related ventures may or may not be included in the sale of your Business. Those partnership or venture contracts may prohibit the transfer of a partner's interest to an outside party. Keep in mind that other business contracts may require the written consent of third parties before those contracts can be transferred.What are trademarks?Trademarks would include all ownership rights to existing copyrights, trade-names and trademarks as well as all rights to all current research not yet trademarked. This will allow the Purchaser to carry on normal operations after the closing date.What is meant by confirmed sales orders?Sales orders which have been confirmed, but were not shipped prior to the closing date, would require goods and inventory from the post-closing inventory. As a result revenues from these sales would typically go to the Purchaser and should not be included in the accounts receivable of the Seller.