Sometimes a purchaser may best to buy the assets of a business rather than the business itself. This is called an asset acquisition.
There are many factors to consider in an asset acquisition. Most importantly the buyer only acquires the assets that it identifies and agrees to acquire.
This is different from a share acquisition or merger where the buyer, by purchasing the shares in a business, acquires all the assets and liabilities (including unknown or undisclosed liabilities) that are part of the business
The ability to pick and choose assets provides the buyer with flexibility. The buyer does not waste money on unwanted assets and eliminates the risk of assuming unknown or undisclosed liabilities. Finally, the acquirer and must agree on how the purchase price is to be allocated among the assets in the deal.