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Series 79: M&A, Tender Offers & Restructuring
Series 79 practice questioneasyStock vs Asset Purchases

In an asset purchase, which of the following typically requires consent before transfer to the buyer?

  1. AAll liabilities of the seller
  2. BCertain contracts with anti-assignment clauses✓ Correct answer
  3. CAll intellectual property assets
  4. DEmployee benefit plans
Explanation

Why BCertain contracts with anti-assignment clauses

Contracts with anti-assignment provisions may require counterparty consent before transfer in an asset purchase. Ignoring this can cause a buyer to miss critical business arrangements.

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