An asset purchase can take on many forms. Tangible assets include equipment, such as machinery or vehicle fleets, as well as factories or land. Intangible business assets such as intellectual property or trade secrets also have value and can be considered for sales and transactions.

In asset sales, the selling company gives the buying company its assets at a certain purchase price. Unlike a stock sale, an asset transaction allows the seller to keep their shares of the legal entity, or business, while the buyer gains control of certain assets that were valuable to the original company.

In drawing up an asset purchase agreement, the buyer typically conducts asset due diligence to determine the fair market value of the purchase. For example, before purchasing a fixed asset such as a factory or land, the buying company will consider the potential proceeds and value over time. This process is distinct from stock sales, which primarily concern equity transfers rather than individual asset value. Sales asset negotiations are typically handled by a secure asset management platform. 

In further contrast with a stock deal, an asset deal allows the buyer to acquire control without taking on the liability of the selling company. Because asset transactions are different from ordinary income, the seller is also able to avoid capital gain taxes on the date of the transaction.