Mergers and acquisitions can help your company to grow and expand into new markets. The experienced mergers and acquisitions attorneys at the Watkins Firm can help you to develop a successful strategy.
How can an asset purchase help to grow your business while preventing exposure to contingent liabilities? An asset purchase contract or agreement is used to purchase the assets, real estate, customers, intellectual property, equipment, inventory or real estate of another company without exposing your business to additional liabilities associated with the other company. An asset purchase allows you to target the specific assets you need to acquire to expand your own opportunities and move forward with profitable business.
When it comes to acquiring part or all of a competitor or a division of a corporation who may be downsizing there are two primary tools: an asset purchase agreement and a stock purchase agreement. A stock purchase agreement is used to purchase an entire company. This vehicle is used when you wish to take over every aspect of the business including existing government contracts, subsidiaries and employees. The disadvantage of a stock purchase is that you also must assume all debts and liabilities of the company you acquire. This additional exposure may not be necessary if you only need to purchase specific assets to accomplish your business goals.
The experienced business attorneys at the Watkins Firm know mergers and acquisitions can help you to grow and prosper. We have decades of experience advising our business clients in all aspects of buying part or all of a business, as well as selling your company. We help you to negotiate the asset purchase contract and perform due diligence to ensure that you know exactly what you are acquiring, any encumbrances that you would assume and that you receive clear title to those assets as part of the transaction.
If you are considering purchasing all or part of a competitor or another corporation it is important to learn how mergers and acquisitions can help your company to grow and the contracts and legal services which will be required to successfully accomplish this. We invite you to contact us or call 858-535-1511 to learn more about how the Watkins Firm can help your business to grow and prosper.