In an asset purchase, only the assets of the business are purchased, not the liabilities. The most important document in an asset deal is the Asset Purchase Agreement (the "APA").In this article, I will discuss the key provisions of an APA. A taxable asset purchase allows the buyer to "step up," or increase, the tax basis of the acquired assets to reflect the purchase price. If you are thinking about purchasing a business from someone, you should be aware of Pennsylvania's Bulk Sale Law. Before finalizing the purchase, it is advisable to form a new legal entity to acquire the business (Asset Purchase). Asset purchase agreements are a useful way to: Carve out certain assets of a business without taking on liabilities or debt obligations. Who is the "Seller"? • Does it include the shareholders for purposes of representations and warranties and indemnification? Below is a general due diligence checklist with the first 8 of 16 items to cover your bases in a business or asset purchase transaction.