Looking for ways to expand your business? Have you considered a proven strategy for business growth through a merger or acquisition or perhaps a joint venture? The proven mergers and acquisitions attorneys at the Watkins Firm have more than four decades of experience in these legally and financially complex business transactions.

How Could a Merger or Acquisition Contribute to Your Business?

How could your goal for business growth through a merger or acquisition be accomplished.  What company might be a good target to consider?  One of the first places to look to expand your opportunities with a merger or acquisition is your competitors.  Are there any existing competitors that have seemed to be able to get attention in your market, but lack the resources, people or skills to leverage opportunities?  Are there smaller competitors who might have valuable intellectual property or companion product and service offerings you could provide to your existing customer base?  Are there others who can’t seem to communicate a substantive value proposition, or show signs of struggle under the challenges of our present business climate or supply chain issues?  What assets, skilled employees, customers, vehicles, commercial property or other interests do they have that could contribute to the growth and success of your own business?

Another proven strategy for consideration includes any existing division of a major corporation that is under-performing or not in harmony with the present direction and scope of the parent organization.  Many substantial well-known corporations are in the midst of a battle for survival.  There are substantial winds of change here in California over the past several months, presenting substantial challenges as well as opening the door to tremendous opportunity.

The experienced mergers and acquisitions attorneys at the Watkins Firm will help you to strategize opportunities and assist with negotiations and the due diligence required to protect your interests and ensure success.  We have helped other companies like yours for more than 40 years, and can guide you through the process of growth that will position your business for rapid expansion and increased profitability the months and years to come.

An Asset Purchase or Stock Purchase?

Some of the best strategies related to business growth through a merger or acquisition involve an asset purchase or a stock purchase.  What are the risks associated with purchasing another business, or just its assets?  How can you purchase the specific portions of a business and its assets that match your goals without exposing yourself to the other company’s debts and liabilities?  Should you consider a joint venture?  Joint ventures allow separate companies to combine their strengths to pursue a geographic or vertical marketplace or opportunity that neither could accomplish on their own, while spreading the associated risks between the joint venture partners.  This is another excellent strategy to open new markets and new opportunities for business growth.

Pro-Tip: “You need to make sure you achieve your goal(s) and get what you paid for. For example, we had a client who came to us a few years after they had acquired a company from the owner.  It was a successful company that had been in business for 15 years. The problem was, after a couple of years had passed, the previous owner of the acquisition had opened up the same exact business within a mile of the location of our client’s operations, and started trying to take away all the Goodwill, even though that was supposed to be prohibited by the original acquisition agreement. That’s the biggest, most common mistake I see. And that’s the one we try to write the strongest clauses against, because it’s just really, it’s basically stealing.

We are often asked, ‘what’s the difference primarily between an asset purchase and a stock purchase?

Well, the asset purchase is leaving the seller’s corporate or limited liability company (business entity) alone. The buyer doesn’t want the company, or to have control of it or a vote in it. The buyer just wants to legally acquire some (or all) of the assets of the seller’s company. When you buy a company through a stock purchase, for example, you want to keep the corporation or LLC going, and maybe keep some key employees, maybe keep the existing customers and goodwill.

Are there specific types of property you can’t just acquire what your interested in through an asset purchase?  Sometimes, the best way to achieve your goals is to step into the shoes of the seller.

For example, we once sold a hotel, and it had a restaurant and a bar with a liquor license.  In that specific situation, our client wanted to break up the sale of the hotel and the real estate into a different transaction from that of the restaurant and the bar and the liquor license. Well, we worked to make sure the transaction included all of the agreements that were applicable wo help the target company survive, and actually do better, while accomplishing our client’s goals and objectives for the transaction.

We have lawyers who have been here at the Watkins Firm for 30 years or more. And we have a proprietary library of all of the transactional documents we’ve prepared over the years. And in that 30 or 40 years of transactional documents, our lawyers have probably come across the same type of agreement and the same type of deal you are proposing. We’ll go back and we’ll find maybe four or five of these similar agreements. And we’ll also compare that to our paid research bank. And we’ll make sure it’s current in the law and custom tailor it to meet your unique situation, while saving a substantial amount of money.

And then we’ll also be able to share with you, as older lawyers, the types of unique strategies we’ve accomplished with previous clients that worked for them in similar circumstances. So in addition to just writing up the documents, as needed, we can also give practical advice of how to structure your transactions, as well as what did and didn’t work for others. We can share the unique experience and strategies that did work for clients that are still around and successful today.” – Dan Watkins, Founding Partner

Expand Your Opportunities with a Merger or Acquisition in San Diego or Southern California

What specific steps are required to successfully achieve business growth through a merger or acquisition or joint venture while increasing the performance and value of your company? 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.  Ask how our 40+ years of experience in California mergers and acquisitions can help you to develop a plan, negotiate a strong deal, craft sound contracts and documents that protect you and conduct the due diligence required to know the likelihood of success is well in your favor.