Reduce the Risk and Increase the Benefits of an Asset Purchase in SD

How can you reduce the risk and increase the benefits of an asset purchase in San Diego? How can you accomplish your business objectives while protecting your business throughout a transaction?

When to Use an Asset Purchase

An asset purchase allows your business to acquire specific assets, including but not limited to:

Real Estate
Inventory
Vehicles
Customers
Operational Assets
Intangible Assets
Intellectual Property

An asset purchase should provide not only clear title to the asset(s) in the transaction, but ensure full disclosure of present condition, known defects and a crystal clear definition of the asset(s) to be acquired.

What Are the Most Important Factors in an Asset Purchase?

The structure of the asset purchase contract and comprehensive due diligence are two of the key factors to reduce the risk and increase the benefits of an asset purchase in San Diego. The structure of the transaction itself allows great flexibility for the buyer to acquire needed assets and property without assuming contingent liabilities. In these transactions, the buyer is in a strong position to dictate which specific assets they wish to acquire and which liabilities (if any) are to be assumed during the transaction.

Asset purchases allow your business to take advantage of the major tax advantage of a step up in basis while developing valuable tax deductions for depreciation and/or amortization of the acquired asset. In addition to tax benefits, the structure of the transaction provides opportunities for important management of other shareholder interests while increasing the power and resources available to your company.

What Are Some of the Risks of an Asset Purchase Transaction?

Asset purchases also carry some risks. The experienced asset purchase attorneys at the Watkins Firm work with our clients to identify these risks and any potential contingent liability which may not be to our client’s advantage. We help to negotiate terms which protect our clients. It is important to ensure the buyer receives clear and unencumbered title to the assets purchased under the transaction. There may be existing contracts to be assumed or renegotiated. Our attorneys work to ensure the final agreement(s) achieve the purchase sought by our client without exposing them to present or future risks or litigation.