Why do you need an attorney for a stock purchase in San Diego? A stock purchase allows you to buy a company outright, but there are substantial risks at every step in the process associated with these transactions. Our proven San Diego mergers and acquisitions and business attorneys have decades of experience helping our clients to navigate this challenging business, legal and financial process.
A Stock Purchase is a Complex Legal and Financial Process
Why do you need an attorney for a stock purchase in San Diego? The stock purchase agreement must be carefully negotiated and meticulously prepared to ensure that you actually receive all of the benefit you anticipate, while preserving access to key personnel and customers. How will due diligence be conducted? What will the transition plan look like? What percentage of existing sales and customer base must be preserved through the transaction to ensure a transfer of genuine value? How long will the former owners be required to maintain an active role or be available as consultants to ensure a smooth transition and the transfer of existing goodwill?
There are so many questions to be asked, books to be examined, numbers to be validated, contracts to be reviewed and details to be analyzed. The acquisition of a company through a stock purchase provides exciting opportunities for the buyer. It also presents substantial genuine risk and the potential for hidden contingent liabilities.
The Difference Between a Stock Purchase and an Asset Purchase
An asset purchase simply pertains to the specific asset(s) to be purchased from one business by another. Unlike an asset purchase, a stock purchase allows you to buy an entire company outright, acquiring all of a competitor’s or existing company’s business assets including government contracts and intellectual property. Legally, it is known as “stepping into the shoes of the owner.” However, a stock purchase exposes you to all existing and contingent debts and liabilities of the company as well. If there are any potential disputes or contingent liabilities, the stock purchase agreement needs to address how these costs or losses are to be offset, and the period of time former ownership can be held liable.
You Need an Experienced Business Attorney for a Stock Purchase in San Diego
Due diligence in these transactions is crucial to long term success. How can you capture the incredible opportunity in front of you while protecting yourself from potential liabilities and litigation? The experienced mergers and acquisitions attorneys at the Watkins Firm have decades of experience in these transactions. We will guide you through the process step-by-step and ensure that the transaction is well structured based upon your own goals and objectives.
Our dedicated team will help with every aspect from valuation, through due diligence, contract negotiations and preparation of the stock purchase agreement. If you are considering the purchase of another company we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. Let’s discuss the transaction you are considering, the steps required to accomplish it, the risks you face and the strategies that will protect your interests while allowing you to capitalize on a tremendous opportunity to grow your own business.
