An asset purchase transaction reduces risk and protects you from liability when acquiring the assets of another company. An asset purchase is quite often a better option for a buyer when compared to a stock purchase agreement. The simple reason: liability.
The Watkins Firm has more than 40 years of experience in literally thousands of asset purchase transactions here in San Diego and Southern California.
What Types of Business Assets Can You Acquire with an Asset Purchase?
There are several types of valuable business assets that can be acquired with a well-structured asset purchase agreement. The asset purchase agreement allows the buyer to acquire specific property or assets from the seller without taking on existing or contingent liabilities associated with the purchase.
The asset purchase may apply to many things from a customer base to intellectual property, from specific inventory to the warehouse itself, and from vehicles and construction equipment to furniture and fixtures. You may acquire a competitor’s trucks, software, licenses and even accounts payable and receivable without having to assume all of their debts and liabilities.
An asset purchase protects the buyer from liability and ensures clear title passes from the seller to the buyer for each separate asset acquired under the asset purchase contract. The Watkins Firm are experienced mergers and acquisitions and business contract attorneys. We have more than four decades of service to the San Diego business and medical community and work with our clients to ensure smooth acquisitions.
An Asset Purchase Transaction Reduces Risk When Properly Structured and Reviewed
An asset purchase transaction reduces risk when properly structured and reviewed. Part of the acquisitions process is due diligence. You want to make sure you understand exactly what you are purchasing including the quality and condition of any tangible asset or inventory, known mechanical issues or potentially hidden defects. You’ll need to ensure that the items are free from encumbrance when title is passed to you. You also need to thoroughly inspect all aspects of the transaction itself to ensure that you will in fact walk away from the transaction with exactly what you intended to purchase.
The Watkins Firm maintains a proprietary library of asset purchase contracts and other business documents that is up-to-date, proven and battle-tested. We custom tailor one of these “experienced” contracts to meet your specific needs while protecting you from contingent risks and liabilities.
Asset purchase agreements are quite legally complex, and it is important to work with the attorneys at the Watkins Firm to protect your interests at every step of the transaction. A well-structured asset purchase transaction allows you to acquire the business assets you want and need while protecting you from contingent or unforeseen liabilities. It will only do so when you work with proven, efficient and experienced mergers and acquisitions lawyers at the Watkins Firm to complete due diligence and custom tailor a proven asset purchase contract while ensuring the assets are free of encumbrance. We invite you to review our podcast Episode 13 – Mergers and Acquisitions as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. Learn how an asset purchase can help you to more rapidly expand your company and business opportunities while increasing profitability.
