Are you searching for proven mergers and acquisitions attorneys for your San Diego stock purchase transaction? Are you buying or selling a company? The mergers and acquisitions attorneys at the Watkins Firm have represented business owners and those purchasing an entity through many asset purchase and stock purchase transactions over our more than four decades of service here in San Diego. The risks for the buyer and seller in these transactions are genuine and numerous.
Acquiring Business Assets or an Entire Company Requires Proven Mergers and Acquisitions Attorneys
Acquiring business assets through an asset purchase or an entire company through a stock purchase requires proven mergers and acquisitions attorneys who have decades of experience and can guide you through this legally and financially complex process. Generally speaking, the seller wants to maximize the amount of cash they receive for their business assets or the company itself and to walk away without any recourse as soon as possible.
The buyer needs to make sure that the assets in an asset purchase are in sound condition, clearly defined, free of liens or encumbrance, and that clear title is achieved through the successful asset purchase transaction. A stock purchase requires detailed analysis of every aspect of the transaction to ensure existing business revenues, customers and key employees survive and thrive during the transition to ensure the passing of goodwill. The buyer is also concerned with an accurate valuation of the business and sound internal accounting.
The Watkins Firm has more than 40 years of experience in literally thousands of mergers and acquisitions in San Diego, throughout California and across the nation. We have developed proprietary contracts and checklists that are proven, battle tested and successful. You can depend on our insight and sound counsel throughout the entire process of a merger or acquisition.
Acquiring a Company Through a Stock Purchase
Acquiring a company through a stock purchase requires attention to detail and a lot of thorough analysis in a fairly short period of time (usually 90 days). The buyer wants to ensure all of the representations of the seller are accurate, transparent and represent a full disclosure including all contingent liabilities. It is generally in the best interest of the buyer to have the seller to work through a “transition” period to ensure the transfer of Goodwill to new ownership and to protect existing customer and supplier relationships as the new owners take over. It is common to establish a hold-back fund to offset discrepancies and unforeseen liabilities or expenses.
How do stock purchase transactions work when the interests of the parties are so different? Our proven mergers and acquisitions attorneys can help you to understand the successful strategies proven in thousands of these transactions across more than 4 decades which move the parties through the sale or acquisition of a company while accomplishing our client’s goals and objectives and protecting their interests.
Thorough Due Diligence
Acquiring a business through a stock purchase requires due diligence in many aspects of the transaction. Assets must be inspected to verify conditional readiness and clear title. The books should be thoroughly inspected by qualified accounting experts who can spot inconsistencies and the potential of over-cooked books or exaggerated claims. Reviewing tax returns for three years prior to the transaction as well as the books themselves can help to provide a sound insight into the financial strengths and challenges of the business you wish to acquire. The Watkins Firm also researches contingent liabilities, to protect our clients from unforeseen lawsuits down the road.
Ask about our proprietary library of due diligence checklists and how working with the Watkins Firm can help to ensure a smooth and profitable transaction.
The Right Mergers and Acquisitions Attorneys for Your Successful Business Deal
Ultimately, we fundamentally understand the nature of the “deal” and working to foster an atmosphere which is conducive to our client’s goals and objectives. We work to craft a sound stock purchase agreement which encapsulates the agreement between the parties themselves while facilitating a smooth transfer of ownership. If you are searching for proven mergers and acquisitions attorneys in San Diego or Southern California we invite you to review our podcast Episode 13 – Mergers and Acquisitions as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
