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Asset Purchase

Asset Purchase Agreement (APA)

Drafting asset purchase agreements manually requires hours of work—reviewing deal terms, customizing standard clauses, coordinating exhibits, and ensuring all representations and warranties align with the transaction structure. Each APA demands meticulous attention to asset schedules, liability assumptions, and indemnification provisions, making the process time-consuming and prone to inconsistencies across multiple deals.

Automation ROI

Time savings at a glance

Manual workflow12 hoursAverage time your team spends by hand
With CaseMark15 minutesDelivery time with CaseMark automation
EfficiencySave 32.5x time with CaseMark

The Problem

Drafting comprehensive Asset Purchase Agreements manually takes 12+ hours of attorney time, requiring meticulous attention to deal terms, asset schedules, liability allocations, and complex indemnification provisions. Missing critical details or inconsistencies between the agreement and exhibits can derail negotiations and expose clients to risk.

The CaseMark Solution

CaseMark analyzes your term sheets and deal documents to generate complete, negotiation-ready Asset Purchase Agreements in minutes. Our AI extracts transaction details, populates all exhibits and schedules, and drafts tailored provisions that protect your client's interests while maintaining commercial reasonability.

Key benefits

How CaseMark automations transform your workflow

Generate complete APAs with all standard provisions in under 15 minutes

Automatically structure asset schedules, excluded assets, and liability assumptions

Customize representations, warranties, and indemnification provisions for each deal

Ensure consistency across multiple transactions with standardized formatting

Reduce drafting time by 95% while maintaining professional quality and accuracy

What you'll receive

Parties and Recitals
Purchase and Sale of Assets
Excluded Assets
Assumption of Liabilities
Purchase Price and Allocation
Representations and Warranties (Seller)
Representations and Warranties (Buyer)
Covenants and Conduct of Business
Non-Competition and Non-Solicitation
Closing Conditions and Deliverables
Indemnification Provisions
Governing Law and Miscellaneous
Signature Blocks
Exhibits (A-D)

Document requirements

Required

  • Term Sheet or Letter of Intent

Optional

  • Due Diligence Materials
  • Prior Correspondence
  • Asset Schedules
  • Contract Lists

Perfect for

M&A attorneys at law firms handling middle-market transactions
Corporate counsel managing business acquisitions
Transactional attorneys in boutique M&A practices
In-house legal teams at private equity firms
Business attorneys advising clients on asset sales

Also useful for

This workflow is applicable across multiple practice areas and use cases

Asset purchase agreements are a fundamental M&A transaction structure, used when buyers acquire specific assets rather than stock, particularly common in middle-market deals.

APAs are one of the two primary transaction structures in M&A (alongside stock purchases), making this workflow essential for M&A practitioners handling asset-based acquisitions.

Private equity firms frequently use asset purchases for platform acquisitions and add-on transactions, requiring standardized APA documentation across portfolio companies.

PE firms regularly structure deals as asset purchases to limit liability exposure and cherry-pick desired assets, making APA automation highly valuable for deal teams and in-house counsel.

Section 363 bankruptcy sales require asset purchase agreements to document the sale of debtor assets free and clear of liens, often under tight court-imposed deadlines.

Bankruptcy asset sales are almost exclusively structured as asset purchases rather than stock sales, and the ability to quickly draft compliant APAs is critical in time-sensitive bankruptcy proceedings.

Financial Services75% relevant

Financial services companies use APAs for acquiring loan portfolios, branch networks, or specific business lines while avoiding regulatory complications of entity-level acquisitions.

Asset purchases allow financial institutions to acquire specific assets without triggering change-of-control provisions or assuming unwanted liabilities, making APAs common in this regulated industry.

Companies winding down operations often sell their remaining assets through APAs as part of the dissolution process, requiring documentation of asset transfers to buyers.

Corporate dissolution frequently involves selling off business assets piecemeal or in bulk, making APA templates useful for efficiently documenting these liquidation transactions.

Frequently asked questions

Q

What information do I need to provide to draft an Asset Purchase Agreement?

A

At minimum, upload your term sheet or letter of intent containing the parties' names, purchase price, and basic deal structure. For best results, also provide asset lists, contract schedules, and due diligence materials. CaseMark will extract all relevant details and flag any missing information that requires your input before generating the agreement.

Q

How does CaseMark handle asset schedules and exhibits?

A

CaseMark automatically generates comprehensive exhibits including detailed purchased asset lists (Exhibit A), excluded assets (Exhibit B), assumed liabilities (Exhibit C), and purchase price allocation (Exhibit D). The AI organizes assets by category and ensures consistency between the main agreement provisions and all schedules.

Q

Can I customize the representations and warranties in the agreement?

A

Yes. CaseMark drafts comprehensive seller and buyer representations tailored to your transaction, including appropriate materiality qualifiers and knowledge limitations. You can review and adjust any provision, and the AI will maintain consistency throughout the document and disclosure schedules.

Q

How does the AI determine appropriate indemnification terms?

A

CaseMark drafts indemnification provisions with market-standard structures including survival periods, baskets, and caps based on the transaction size and type. The AI distinguishes between fundamental representations (longer survival, no caps) and general representations (limited survival and caps), while allowing you to adjust these terms to match your negotiated deal points.

Q

What happens if my deal documents are missing key information?

A

CaseMark identifies gaps in the provided information and clearly flags missing details such as specific asset descriptions, exact purchase price amounts, or closing conditions. You'll receive prompts to provide this information before the final agreement is generated, ensuring nothing critical is overlooked.