When should you consider an asset purchase for business growth in San Diego or throughout California? An asset purchase can position your company to improve customer service or expand offerings to the marketplace.
What is an Asset Purchase?
What is an asset purchase transaction? This effective strategy allows you to acquire the equipment, customers, real estate, products or inventory needed to expand your company, without the risk of taking on the contingent debts or liabilities of another business or corporation.
An asset purchase transfers specific tangible assets to your company, allowing you to buy out a segment of a competitor’s fleet of vehicles, or a portion of their customer base. You’ll want to make sure the item is not encumbered as security for a loan and that specific and unique identifiers and the condition of the asset(s) are included as part of the asset purchase contract.
Ask how the Watkins Firm’s 40+ years of experience in mergers and acquisitions and asset purchase contracts can support your company as you approach the acquisition transaction. If you are looking for ways to expand opportunity or reach new markets you should consider an asset purchase for business growth.
Are There Limitations with an Asset Purchase?
There are some limitations to balanced into the equation when you consider an asset purchase for business growth. Generally speaking, intellectual property (IP) can represent a challenge and substantial due diligence is required when IP is a critical component of the assets to be acquired. Asset purchases are usually private transactions, and no documentation is recorded. This presents specific challenges and risks associated with ownership, protection and defense of intellectual property.
Government contracts are often tied to specific corporate entities, and may not be conveyed in an asset purchase.
While an asset purchase is strategy for business growth substantial due diligence is required to protect your interests throughout the transaction. We have developed a strong proprietary library of proven asset purchase agreements over more than 40 years of successful transactions. We do not have to create your agreement from scratch. We modify an existing, proven asset purchase contract to the unique specifications of the acquisition at hand. This saves our clients a substantial amount of money while providing a proven and strong contract to govern this important business transaction.
Our attorneys help you to understand each step and how the asset purchase agreement will guide the parties through the process. We work to ensure clear title while capturing a clear description of the property to be acquired and its present condition as well as any warranties provided by the seller.
Consider An Asset Purchase for Business Growth With the Support of the Mergers and Acquisitions Attorneys at the Watkins Firm
You can approach the situation with confidence as you consider an asset purchase for business growth with the support of the M & A attorneys at the Watkins Firm. Our decades of experience in asset purchase transactions as well as mergers and acquisitions adds substantial confidence and strength to your side of this important business transaction.
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.
We will discuss the transaction, your goals and objectives and develop a specific strategy and budget to accomplish them. You can take advantage of our deep experience and seasoned perspective on these transactions, and ensure that your asset purchase is accomplished smoothly and successfully.
