The experienced mergers and acquisitions attorneys at the Watkins Firm help clients to understand how asset purchase contracts expand business opportunity while protecting against unexpected liabilities. An asset purchase agreement is a powerful strategy to help your company to expand it’s product and service offering with fairly minimal exposure to risk. Business opportunity often arises when least expected. A competitor is selling bucket trucks or inventory or going out of business completely. A major corporation has decided to de-emphasize a product line that doesn’t fit into their overall corporate strategy but aligns perfectly with yours. A company without the strength and resources of your organization is perfectly positioned to serve a new geographic region or vertical market niche.
The two primary questions are “do you have the financial resources to complete the transaction” and “how do you ensure you have clear title to the assets you purchase once the transaction is completed?” If you have the required capital investment it is important to ensure that you know what you are buying and you receive clear title to any asset you intend to purchase, free of encumbrance or liability. The experienced lawyers at the Watkins Firm help you to complete the process from initial negotiations, through due diligence and inspection to drafting of a well-crafted asset purchase contract. We work to ensure you know exactly what you are purchasing and that your ownership of the item(s) in question is clearly established and title is appropriately transferred.
While asset purchase contracts expand business opportunity for many clients, in some cases it is necessary to consider a stock purchase – the purchase of a company or controlling interest therein. This may be necessary to protect existing contracts and customer relationships, preserve branding and maintain employees during the transfer.
If your are considering an asset purchase we invite you to call (858) 535-1511 or contact us for a free consultation. Learn how we can help your company to acquire the needed assets and expand your capacity and profitability.