Are you searching for contracts for any purchase or sale transaction in San Diego? Are you considering the purchase of a business or Commercial real estate? Are you looking for a San Diego law firm with extensive experience in buy sell agreements, asset purchase contracts and stock purchase agreements?
The Importance of a Well Crafted Buy Sell Agreement
One of the most important corporate documents during business formation and throughout the life of a company is the buy sell agreement. A buy sell agreement is a contract between partners, members in an LLC or shareholders in an S Corporation, C-Corporation or Professional Corporation which establishes the process for the buy out of the interest of a deceased or incapacitated partner or fellow owner. The buy sell agreement also governs important events in the life of a business partner such as a divorce, bankruptcy or the inability to meet a required capital contribution. The spouses of each principal should sign this agreement as well to protect your business interests. The agreement establishes a reasonable formula for calculating the value of an owner’s interest, and provides terms for the payment of that value. Usually this includes a down payment and either stock or a payment plan for the balance.
Mergers and Acquisitions
The Watkins Firm has served San Diego and Southern California for decades. Our attorneys have extensive experience in every aspect of a business transaction as well as mergers and acquisitions. There are two primary ways to purchase or merge with an existing business: Stock Purchase or an Asset Purchase. In a stock purchase, you are acquiring the stock which controls the entity itself. You are acquiring not only all of the assets of the target company but the liabilities of the business as well. This includes existing financing as well as any potential, pending or contingent liabilities which might exist. Stock purchase contracts require extensive due diligence and a well crafted agreement which protects your interests.
Another of the important contracts for any purchase or sale transaction in San Diego is an asset purchase contract. An asset purchase limits many of the risks associated with the transaction as it is more limited in scope. You are acquiring a specific asset or group of assets. This can be anything from a commercial building, inventory and equipment to vehicles, customers, or even an under-performing division of a major corporation. The primary issues of an asset purchase involve the assurance of clear title to the assets you are purchasing and all aspects of any underlying financing which must be retired or assumed. An asset purchase agreement should clearly establish the exact asset(s) to be acquired, present condition, existing encumbrance (if any) and the complete terms of the transaction.
Well Crafted Contracts for Any Business Purchase or Sale Transaction in San Diego
If you are searching for well crafted contracts for any purchase or sale transaction in San Diego or Southern California 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. Purchase and sale transactions as well as mergers and joint ventures are fraught with risk, however they also provide the opportunity for tremendous growth and profit. You need sound, proven counsel to guide you through the process or transaction, protect your interests and ensure a smooth, profitable transaction.
