What are some of the precautions to consider during an asset purchase in a San Diego business transaction? Why do so many asset purchase contracts wind up in litigation? Why is it important to seek the advice and counsel of the business transaction attorneys at the Watkins Firm if you are considering the purchase of some of the assets of an existing business? The primary challenges faced by the parties in an asset purchase transaction center on the passing of clear title to an asset, disclosure of the condition of the asset(s) to be purchased and unforeseen contingent liabilities associated with those assets.
These are issues which our experienced attorneys thoroughly examine during the course of due diligence. Due diligence requires professional assessment of the assets to be purchased, underlying encumbrances or financing, condition of the asset(s) and any potential contingent liabilities which might threaten the asset purchase transaction down the road. Identification of the assets including serial or other identifying numbers, a statement of the condition of all assets by the seller and full disclosure of any known defects. If there are existing encumbrances or liens, it is important to begin negotiations with lenders and/or lien holders early in the process to maximize the opportunity for a successful transaction.
There are many precautions to consider during an asset purchase and the mergers and acquisitions attorneys at the Watkins Firm ensure the seller can provide clear title. If the asset to be purchased is a customer base or existing service agreements it is important to preserve existing Goodwill while identifying any past, present or future issues or imperfections which might interfere with the successful transfer of the asset or its value in the future.
The Watkins Firm has represented buyers and sellers in the San Diego business community for decades. We invite you to review the recommendations of our clients and contact us or call 858-535-1511 for a free consultation.