Asset purchase agreements can be a useful way to create a new business while leaving unwanted resources and potential issues with the seller. An APA, or Asset Purchase Agreement, is a contract in which a buyer and seller agree to the transfer of ownership for an asset at an agreed price.Both the seller and purchaser of a group of assets that makes up a trade or business must use Form 8594 to report such a sale. You'll outline key details like the purchase price, escrow terms, indemnification, and more using clear, concise language to bind both parties. Learn the tax implications for each type of sale. 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. An asset purchase agreement (APA) is the contract that governs the sale of your business to the buyer.