An asset purchase agreement is a strong tool when approaching mergers and acquisitions strategies. The asset purchase agreement allows your business to acquire the specific business assets, intellectual property, real estate and even customers of a competitor or complimentary business. This is one of the fastest and most effective strategies to expand your business and increase profitability.
The business attorneys at the Watkins Firm have decades of experience and expertise in the negotiation, creation and review of asset purchase agreements here in San Diego. We understand the “energy” surrounding these types of transactions, and work to foster and protect a positive and constructive working environment. The asset purchase agreement protects you from contingent liabilities associated with the “seller.” It ensures that you receive clean title to the specific assets you wish without exposure to external debts, obligations or liabilities the seller may carry.
In some cases, the asset purchase agreement is very straight forward. You wish to purchase three specific bucket trucks, and simply need to ensure that the transaction is properly structured and executed. In other cases, it may be important to ensure that certain performance benchmarks are met, that customers transition smoothly while maintaining existing goodwill. In most cases a “hold-back” or escrow may be created to offset unforeseen complications, mechanical issues, production differences or other complications.
As a buyer, you want to make sure that you receive clear title to the specific assets you are targeting, and that if there is any issue with the acquisition that you have a method to hold the seller accountable. As a seller, the primary objective is to complete a transaction, as-is, for a fixed price and walk away. The two points of view are obviously not always in harmony with one another, and that is where the art and expertise of our experienced mergers and acquisitions lawyers becomes evident. We work to accomplish your goals efficiently, while protecting your short and long-term interests.
If you are interested in acquiring the assets of another business we invite you to contact us for a free consultation at 858-535-1511.