Are you searching for a proven San Diego stock purchase attorney with more than 40 years of successful mergers and acquisitions experience in Southern California? The Watkins Firm provides proprietary contracts and due diligence checklists refined across four decades in successful M & A transactions.
Recent studies and articles in business journals such as the Harvard Business Review place the failure rate of stock purchase transactions between 70% and 90% across the country. The Watkins Firm has successfully managed hundreds and hundreds of mergers and acquisitions across the decades with a very high rate of success. What is the difference that the Watkins Firm brings to the table and how can we work with you to ensure a successful stock purchase transaction?
The Risks of a Stock Purchase
While an asset purchase provides the opportunity to acquire specific assets and reduce or eliminate risk, a stock purchase is fraught with legal and financial issues and risks for the buyer and seller alike. The primary risks in a stock purchase are accurate valuation, unforeseen contingent liabilities and a lack of due diligence.
Has there been a substantial change in the market or the competition of the target acquisition? Are they running from dissatisfied customers or outdated product mix? What must be done to ensure key employees and customers alike are locked into the transaction to ensure the transfer of full value and goodwill?
This is why it is important to draw upon the experience and proven success of a San Diego stock purchase attorney from the Watkins Firm. Our high success rate in stock purchase transactions is based upon genuine extensive experience, a thorough knowledge of the process and associated documents and the ability to manage, reduce or eliminate associated inherent risks.
Ask about our proprietary library of stock purchase agreements and due diligence checklists which have been tested and proven across more than four decades. Every aspect of our client’s interest in the transaction must be thoroughly analyzed and documented.
The Contributions of an Experienced San Diego Stock Purchase Attorney from the Watkins Firm
The contributions of an experienced San Diego stock purchase attorney from the Watkins Firm help to ensure a successful outcome for our client – either the buyer or the seller. The buyer and seller have differing (and often competing) interests in many aspects of the transaction. The art of a successful stock purchase transaction is the ability of your Watkins Firm attorney to work with you to enhance your position and to ensure you have a clear understanding and mastery of all of the transaction at hand.
The transaction must be structured to protect our client’s interests and to ensure that unforeseen liabilities don’t surprise them once the transaction is completed. We work to make sure our client’s interests are protected and that the transaction and supporting contracts and agreements are well conceived. Ask about recent attempts to cheat sellers out of the equity of their company through tactics associated with carry-back financing or providing stock to pay for part or all of the transaction.
Another reason stock purchase transactions require skill and experience is the delicate negotiations that resolve issues surrounding that contingent liability. In an ideal world the seller in these transactions would want to receive the most amount of money possible and walk away from the transaction without any future exposure, responsibilities or liability. This simply isn’t feasible, and definitely isn’t in the buyer’s interests (unless this right can be offset by something substantial such as an insurance policy or a greatly reduced purchase price).
Usually, the seller must remain as an active participant or consultant in the business following the completion of a stock purchase to ensure the transfer of goodwill, and to prevent disputes or liabilities from arising. Sophisticated buyers will require the seller to set aside some of the proceeds of the sale in reserve to offset any unforeseen liabilities for a period of time.
Your San Diego stock purchase attorney at the Watkins Firm takes an active role to advance and protect your interests throughout the transaction. We work to enhance and facilitate the atmosphere of “the deal” while providing sound advice and counsel to protect our clients and ensure the best possible outcome based upon their unique goals and objectives.
You Need an Experienced, Proven Legal Mergers and Acquisitions Attorney
A stock purchase allows one to sell or acquire a business entity or a substantial interest therein. A successful transaction should preserve existing key employees, customers, contracts, supply chains and vendor relationships – many of whom may even be unaware that a transaction has taken place. Your Watkins Firm attorney can help a seller to organize and present appropriate information and prepare their entity and business in such a way as to command the highest possible value, while making sure the buyer can and will fulfill the commitments and financial obligations they’ve undertaken.
We provide insight and sound counsel to buyers as we work through extensive due diligence to ensure every detail of the acquisition is managed while working to ensure a smooth transfer of ownership and goodwill.
Our clients understand stock purchase transactions require genuine legal skill and look to the experienced mergers and acquisitions attorneys at the Watkins Firm to protect their interests, limit or eliminate liability and contribute in a positive manner throughout the course of the “deal-making” process. If you are considering buying or selling a business in San Diego and are searching for a successful, proven and experienced San Diego stock purchase attorney 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.
