What characterizes an asset purchase in an acquisition?

An asset purchase in an acquisition is characterized by the buyer purchasing selected assets instead of the entire entity. This means the acquiring company has the ability to choose specific assets that it wants to buy, which can include physical assets like machinery and real estate, as well as intangible assets such as patents or customer lists. This approach allows the buyer to target only those assets that are valuable to their operations, while often leaving behind any unwanted liabilities or obligations associated with the seller's entire business. Asset purchases can be advantageous for buyers who want to mitigate risks related to debts or other issues tied to the seller’s corporate history.

In contrast to this, other options refer to different types of transactions or elements that do not accurately characterize an asset purchase. For instance, buying only intellectual property does not encompass the full range of asset selection in an acquisition; acquiring the entire business including liabilities represents a different scenario known as a stock purchase; while negotiating a share purchase instead of an asset deal indicates an entirely different type of acquisition structure.