ContractsCounsel has assisted 448 clients with asset purchase agreements and maintains a network of 155 business lawyers available daily. These lawyers collectively have 77 reviews to help you choose the best lawyer for your needs.
The average cost (i.e., legal fees) for a lawyer to draft an asset purchase agreement is $1290 [1] on a flat fee basis. The average cost for a lawyer to review an asset purchase agreement is $750 [2] on a flat fee basis. These cost points come from recent projects on the ContractsCounsel platform and are averages from across all US states.
Based on 76 recent projects completed by lawyers on ContractsCounsel.
Last updated: 13 September, 2024
Create Asset Purchase Agreement Review Asset Purchase Agreement Buy TemplateAn asset purchase agreement is a legally binding contract between a buyer and seller. Asset purchase agreements outline the term of the purchase, and include terms like the purchase price, closing terms, warranties and more. Asset purchase agreements differ from entity purchase agreements because a buyer is simply buying assets, as opposed to also acquiring the business entity and its shares.
Getting help from an asset purchase agreement lawyer to draft an APA is highly encouraged since these contracts are the backbone of an acquisition, which can typically be complex. Asset purchase agreements are also important to clearly outline terms between the buyer and seller to avoid future disputes during the transaction or after it closes.
Asset purchase agreement costs depends on how complex the deal is, which includes the types of assets being acquired, the location of the buyer and seller, and the number of custom terms needed to be included in the document.
Below are the key terms that are typically included in an asset purchase agreement.
An asset purchase is when a buyer decides to purchase certain assets from a company. The types of assets can vary dramatically, and the decision to only purchase assets can be to limit the purchase of liabilities that may come with an entity purchase.
For an entity purchase, a buyer will also inherit tax liability, existing contracts, vendor relationships, and other types of potential liabilities that entity may have. For those reasons, an asset purchase may be more attractive to buyers if they are online interested in acquiring the assets of a company Below is a list of the different types of asset purchases:
Many business owners will hire a knowledgeable acquisitions lawyer to consult on a deal and draft their asset purchase agreement. They may even ask the lawyer to create a letter of intent, bill of sale, and other documents that are traditionally involved in an acquisition. This is where the buyer incurs asset purchase agreement costs.
Asset purchase agreement drafting projects will include a consultation by the lawyer to learn about the potential transaction and assets in scope. The lawyer will also want to learn about any key terms the buyer will require in their purchase agreement, which can include payment and closing terms. Asset purchase agreement costs can vary based on how many custom terms need to be included in the agreement.
Reasons you may need to find a lawyer to draft an asset purchase agreement include:
Traditionally, buyers provide the seller an asset purchase agreement to review when trying to close a transaction. In this case, the seller will want to hire a business lawyer to help review the proposed asset purchase agreement to make sure their interests and rights are protected. Before signing, you will want to work with a lawyer to discuss the terms of the potential transaction to make sure everything is accurately reflected in the agreement.
Reasons you may need to find a lawyer to review an asset purchase agreement may include:
Acquisitions can go poorly in some circumstances where they may be a potential breach of contract by one of the parties. An example would be a party not being truthful during due diligence or not delivering on a term in the contract they promised to. Any breach of contract will require a review of the asset purchase agreement and an analysis as to whether any of the terms were breached, which may lead to a business dispute.
Examples of when you may need to review an asset purchase agreement for a potential breach of contract include:
Drafting an asset purchase agreement comes with costs, since it requires the time of a trained lawyer to complete the project.
ContractsCounsel’s marketplace data shows the average asset purchase agreement drafting costs to be $1290 across all states and industries.
Hiring a lawyer to review an asset purchase agreement will come with fees. The lawyer will take time reading over the agreement to analyze the terms and consulting with the seller.
ContractsCounsel’s marketplace data shows the average asset purchase agreement review costs to be $750 across all states and industries.
M&A lawyers charge for services in a variety of ways. Depending on the complexity of the agreement or deal, the lawyer will typically suggest fee options to the client.
Many business lawyers prefer to bill hourly for their time. This means the attorney will provide an hourly fee to be approved by the client and log time in a timesheet to be invoiced at the end of the project for time spent drafting or reviewing the APA. This is typically the safest way for the lawyer to charge clients since they are covered if the assignment takes more time than expected.
ContractsCounsel’s marketplace data shows the average hourly rate for a business lawyer ranges from $250 - $400 per hour.
For drafting projects, flat fee billing structures have become popular. Lawyers will provide a flat-fee to the client for approval before starting the project. The benefit of flat fee billing is it provides certainty to the client on the total cost of the project. Always make sure you know what is included in the fee before starting, as it may not include rounds of revisions.
ContractsCounsel’s marketplace data shows the average flat fee rate for asset purchase agreement costs to be $1080.
Do you need help with an acquisition project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Corporate and transactional attorney in sixth year of practice. Focus areas include general corporate counsel, labor and employment law, business partnership matters, securities matters related to privately-held companies, and regulatory compliance in securities and finance matters.
NY Admitted Lawyer 20+ years of experience. Focused on Startups , Entrepreneurs, Entertainers, Producers, Athletes and SMB Companies. I have been a part of numerous startups as Founder, CEO, General Counsel and Deal Executive. I have been through the full life cycle from boot strap to seed investors to large funds-public companies to successful exit. Let me use my experiences help you as you grow your business through these various stages. We saw a market for an on-line platform dedicated to Virtual General Counsel Services to Start Ups and Private Companies.
Rhea de Aenlle is a business-savvy attorney with extensive experience in Privacy & Data Security (CIPP/US, CIPP/E), GDPR, CCPA, HIPAA, FERPA, Intellectual Property, and Commercial Contracts. She has over 25 years of legal experience as an in-house counsel, AM Law 100 firm associate, and a solo practice attorney. Rhea works with start-up and midsize technology companies.
Advised startups and established corporations on a wide range of commercial and corporate matters, including VC funding, technology law, and M&A. Commercial and Corporate Matters • Advised companies on commercial and corporate matters and drafted corporate documents and commercial agreements—including but not limited to —Convertible Note, SAFE, Promissory Note, Terms and Conditions, SaaS Agreement, Employment Agreement, Contractor Agreement, Joint Venture Agreement, Stock Purchase Agreement, Asset Purchase Agreement, Shareholders Agreement, Partnership Agreement, Franchise Agreement, License Agreement, and Financing Agreement. • Drafted and revised internal regulations of joint venture companies (board of directors, employment, office organization, discretional duty, internal control, accounting, fund management, etc.) • Advised JVs on corporate structuring and other legal matters • Advised startups on VC funding Employment Matters • Drafted a wide range of employment agreements, including dental associate agreements, physician employment agreements, startup employment agreements, and executive employment agreements. • Advised clients on complex employment law matters and drafted employment agreements, dispute settlement agreements, and severance agreements. General Counsel • As outside general counsel, I advised startups on ICOs, securities law, business licenses, regulatory compliance, and other commercial and corporate matters. • Drafted or analyzed coin or token sale agreements for global ICOs. • Assisted clients with corporate formations, including filing incorporation documents and foreign corporation registrations, drafting operating and partnership agreements, and creating articles of incorporation and bylaws. Dispute Resolution • Conducted legal research, and document review, and drafted pleadings, motions, and other trial documents. • Advised the client on strategic approaches to discovery proceedings and settlement negotiation. • Advised clients on employment dispute settlements.
