How can you reduce or eliminate the risk of a San Diego asset purchase and how can the experienced business attorneys at the Watkins Firm protect your interests while helping you to complete a successful business transaction? An asset purchase allows you to acquire the equipment, real property, inventory, machinery or customers of a business without having to purchase the company itself. The challenges associated with an asset purchase include, but are not limited to:
- Clear title
- Thorough due diligence
- Condition of assets to be acquired
- Representations and warranties
- Assumption of liabilities/financial instruments/UCC Forms
- Tax implications of the transaction
The asset purchase contract should be a carefully constructed, well-crafted document which provides significant protections to the buyer while capturing the benefit or the bargain each party expects to receive. This should include the transfer of title to all assets, a comprehensive inventory and unique identification of each asset (when available) as well as a well-crafted contract which guides the transaction from the initial agreement through due diligence and ultimately to the transfer of title and completion of a successful transaction.
What steps do you take to reduce or eliminate the risk of a San Diego asset purchase? The primary risk in any acquisition usually lies in any unreported or undisclosed encumbrance on the asset itself. For example, if you wished to purchase a specialized truck from another business our attorneys must ensure the asset is not pledged as collateral or otherwise encumbered through another financial obligation. It is important to engage in thorough due diligence to assess the condition of the asset to be acquired, the manner in which it was acquired and any potential liabilities associated with the asset.
Watkins Firm attorneys ensure comprehensive protections including a thorough disclosure by the seller known as “representations and warranties” are contained within the asset purchase contract. An effective asset purchase contract must also provide for the resolution of any disputes or liabilities which might arise and the process for resolving these issues such as mediation or arbitration.
Reduce or eliminate the risk of a San Diego asset purchase by working with the Watkins Firm. Draw on our attorney’s experience, legal skill, due diligence and a well-crafted asset purchase contract. We invite you to review the strong recommendations of our clients and the legal industry and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
