Purchase Agreement


A purchase agreement is a contract used to transfer the ownership or sale of a business.

Definition: Asset Purchase Agreement (APA)

An agreement by which a business sells some or all of its assets to an acquirer, typically structured as an asset purchase or asset sale.

Definition: Definitive Purchase Agreement (DPA)

The final agreement that is signed during the process of buying or selling a business that transfers the individual assets from the seller to the buyer.

Definition: Stock Purchase Agreement (SPA)

A deal structure where the buyer purchases all of the stock of the target from the selling stockholders, often resulting in the target becoming a wholly owned subsidiary of the buyer.

See Also

Representations & warranties.