In an asset transaction it is advantageous to allocate the purchase price to specific assets so as to avoid the parties’ taking inconsistent positions. The parties will normally agree to use these allocations for all tax purposes. The parties are not co

The price paid for a US enterprise may be fixed, subject to adjustment, or contingent. The cash price in a share acquisition or merger may be fixed, although the seller may represent that the target’s net working capital

In the United States, it is generally assumed that the buyer of a company is entitled to complete information regarding the company, its operations, financial situation, and prospects.

It is increasingly common to finance an acquisition with the target’s assets or future profits. This method is called a leveraged buyout. The assets of the target company may be pledged to a bank or other financial institution