Asset Purchase - This term is used to define a transaction in which a purchase of a business is made by purchasing its assets only.  In other words, the buyer is not acquiring the corporate structure or business entity itself.  The business my be owned in a corporate structure or limited liability structure which may have debts or existing liabilities such as lawsuits that are pending. 

       In order to avoid the debts and liabilities of that corporation, the buyer may just buy the business.  Example:  Let's say a Elite Manufacturing Corporation has equipment, client accounts, real estate and 2 lawsuits pending.  Bill wants to buy most of the equipment, customer accounts and the real estate, but does not want the liability of the lawsuit.  Rather that buying Elite Manufacturing Corporation he does an asset purchase of the equipment, customer accounts and real estate.