Remove all assets that are not part of the purchase, The oil and gas industry does not distinguish between an asset and the purchase of shares when the corresponding purchase agreement is named. In this sector, whether it is the purchase of assets or shares, the final agreement is called the Purchase and Sale Contract (PSA). An asset purchase agreement (APA) is an agreement between a buyer and a seller that concludes the terms of the purchase and sale of assets of a company.   It is important to note in an APA transaction that it is not necessary for the buyer to purchase all of the company`s assets. Indeed, it is customary for a buyer to exclude certain assets in an APA. The provisions of an APA may include payment of the purchase price, monthly payments, pawn and asset charges, closing condition, etc.  An APA is different from a share purchase agreement (SPA) in which business shares are also sold, ownership of assets and ownership of liabilities.  In an APA, the buyer must choose certain assets and avoid redundant assets. These facilities are broken down according to an APA schedule. The buyer in a SPA buys shares in the company.
In this case, there is no need to revalue the transfer of ownership of the company. The APA is the legal mechanism for merging or acquiring businesses.  The asset sale contract is often signed, but the conclusion does not come until after due diligence has been concluded. In this case, the asset purchase agreement contains provisions relating to the seller`s activity prior to the conclusion. In addition to the flexibility to sell only certain assets and not the entire business, asset acquisition agreements generally contain detailed provisions regarding the transfer of liabilities from the seller. An asset repurchase agreement is a contract that concludes the terms of an asset sale. Such an agreement is also necessary when only a portion of a company`s assets is sold. Some asset transfers during an asset sale, such as the transfer of intellectual property or real estate rights, make such a contract even more difficult.