When to Use an Asset Purchase

When to Use an Asset Purchase - San Diego Business Attorneys

Do you know when to use an asset purchase contract as a San Diego business owner or executive?  Asset purchase transactions are much more common in San Diego and Southern California than stock purchase acquisitions or mergers.  What do you need to know about an asset purchase and when to consider one?

Acquiring the Assets of A San Diego Business or Corporation

In many cases acquiring the assets of a San Diego business or corporation, such as one of your competitors, through an “asset purchase” is often the best way to accomplish the growth you desire without taking on unnecessary risk.  An asset purchase contract allows you to selectively acquire the specific machinery, vehicles, real estate, branding, customer base, or product line of an existing business without accepting the associated risk of contingent liability.  It also allows you to purchase a segment of a company that may not fit into their long term plans without either purchasing a corporation in its entirety, or submitting to a takeover of your own company.

The Watkins Firm has more than 40 years of experience in San Diego and Southern California asset purchase transactions.  These transactions and associated contracts must be customized to not only unique and specific assets but the terms agreed upon by both parties.  The Watkins Firm maintains a proprietary library of proven, battle-tested contracts and asset purchase agreements to help reduce the cost of the agreement while protecting our customers interests.  How will the overall purchase price be allocated to specific assets to maximize tax advantages?  Is there a business name, trade name, goodwill or brand that is part of the asset purchase transaction that needs to be protected as part of the agreement in place?

Knowing when to use an asset purchase to accomplish your business goals can be a bit complex.  There may be issues associated with regulatory compliance, existing lien holders, concerns or outright disputes with minority shareholders of the seller or other unforeseen contingent liabilities.  This is why it is important to work with the experienced mergers and acquisitions attorneys at the Watkins Firm.

Do You Know How and When to Use an Asset Purchase to Accomplish Your Business Goals?

Do you know when an asset purchase contract will accomplish the task at hand and how to eliminate contingent liability and other exposures in these common business transactions?  What can go wrong and how do you protect yourself and your company while acquiring the assets of another business?

Asset purchase agreements are an excellent tool in the growth of a business or corporation.  These transactions can be legally and technically quite complex and it is important to work with the Watkins Firm, San Diego business attorneys with more than four decades of experience and expertise to advise you and tailor the agreements that will efficiently and effectively complete the transaction and expand your company. 

Draw on the cost effective contracts and services a law firm with 40+ years of experience in tens of thousands of these important business transactions.  The Watkins Firm is small enough to relate to you personally provide responsive and cost effective services, yet strong and experienced enough to take on the largest task or corporate entity to protect your interests and help you to accomplish your goals.  We invite you review our podcast Episode 9 – Buying or Selling a Business or its Assets as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.