After-acquired property is a legal concept that describes assets a company obtains after-the-fact. Those assets may include tangible items (such as wells or real estate), intangible items (such as patents, copyrights, or trademarks), or other forms of intellectual property. In some cases, after-acquired property can even include debt or liabilities.
When businesses purchase other businesses, after-acquired property plays an important role. The assets obtained after the original sale may be valuable to the acquirer, and the acquirer will need to be aware of these assets prior to making an offer. Additionally, the acquirer may need to take these into consideration when preparing a purchase agreement.
It is important to note that after-acquired property does not necessarily refer to physical property. A company may acquire assets such as patents, copyrights, trade secrets, or other intellectual property. For example, a company might purchase a patent for a new invention it wants to produce, or might purchase a copyright for a series of books it wants to publish.
After-acquired property can be a very complex concept, and businesses may need to enlist the help of a legal professional to ensure they are properly aware of and protected from any potential liabilities associated with after-acquired property. Knowing the nuances of after-acquired property can be especially important for businesses in the midst of mergers or acquisitions.