An asset sale is a transaction where a business sells its individual assets rather than its entire company. This can include items like equipment, inventory, real estate, or intellectual property. Buyers typically acquire specific assets they need, while the seller retains any liabilities or obligations not included in the sale. In an asset sale, the seller may negotiate terms that allow them to keep certain assets or liabilities. This type of sale is often preferred by buyers because they can choose which assets to purchase, potentially reducing their risk. It is common in situations like business restructuring or liquidation.