Purchasers and their financers will require satisfactory inspection reports as a condition for closing the transaction. An asset purchase agreement should include clear procedures for inspection, and clear standards for determining whether the inspected assets comply with the terms of the agreement.
22 different convenience stores were sold to a restaurant business in North Dakota, pursuant to an asset purchase agreement. The acquisition was subject to certain regulatory approvals and other customary closing conditions, including the receipt of satisfactory inspection reports related to the stores.
- The inspection of assets that are the subject of an asset purchase agreement may often determine whether the asset purchase agreement comes to fruition.
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