How can you grow your business? What are the options to invest in your future? Expand your San Diego business with a stock purchase and acquire a competitor or a portion of a larger corporation that no longer meshes with their primary corporate strategy. In a stock purchase, you acquire the entire company including:
- All existing government and business contracts
- Intellectual Property
- Real Estate
- Inventory and Assets
- Customers, Suppliers and Distribution Agreements
- Debts and any Contingent Liabilities
The last one on the list above, “debts and any contingent liabilities” represents potentially the greatest risk to your plans. A stock purchase is different from an “asset purchase” as you literally “step into the shoes” of the target’s present owner. This means you will be responsible for all debts and contingent liabilities as part of the acquisition. Due diligence is one of the most important aspects of a successful stock purchase. The attorneys at Watkins Firm protect our clients and provide due diligence to examine all aspects of the transaction as well as present liabilities and the potential for contingent liabilities in the future.
This is why it is important to retain an experienced and proven mergers and acquisitions partner like the Watkins Firm. We have helped hundreds of business through these transactions over our decades of service to the San Diego region. This may be an excellent opportunity to expand your San Diego business with a stock purchase transaction. There are often hidden risks and exposures which can be reduced or mitigated altogether with a strong succession plan.
There are many aspects to consider when you expand your San Diego business with a stock purchase. The process should begin with a call to our legal team for a free and substantive consultation at 858-535-1511 or contact us by email if you prefer. Acquiring a competitor or a part of a large corporation can be an excellent strategy for growth.