Are you searching for a San Diego stock purchase transaction attorney? The decision to conduct a stock purchase versus another form of merger and acquisition in San Diego or Southern California can be the difference between success and failure, potential loss and huge profitability.
What is a Stock Purchase
A stock purchase effectively transfers ownership of a business or corporation without disturbing important existing assets such as government contracts, patents and copyrights, or even leases and customer relationships. Stock purchase agreements allow the buyer to step directly into the shoes of the seller. These complex business transactions require extensive due diligence and carefully crafted contracts to ensure a successful outcome.
The Risks of a Stock Purchase
Stock purchase agreements may open you to extended liabilities which an asset purchase would limit, but you may not be able to accomplish your business objective by simply purchasing the assets. Many of these transactions specify a “hold back” amount from the seller’s proceeds to protect against unexpected liabilities or inconsistencies between a seller’s disclosures and the actual numbers after closing. It is in your interest to reduce the contingent liabilities you may face after the stock purchase, and develop an agreement that allows you to push unexpected costs or losses back to the “seller”.
Due Diligence – The Advantage of our Watkins Firm San Diego Stock Purchase Transaction Attorney
Your San Diego stock purchase transaction attorney provides proprietary due diligence checklists and process which have been developed through more than 40 years of successful stock purchase acquisitions. Due diligence is one of the primary keys to success in these complex legal and financial transactions. Due diligence covers not only verification of all Representations and Warranties but also every aspect of the transaction, especially from the buyer’s point of view. The seller must also ensure due diligence to ensure the buyer can and will perform and successfully complete the transaction.
The Watkins Firm may also recommend a transition plan which provides incentives for the seller to remain active in the business for a period of time after closing to ensure the successful transition of business and existing Goodwill.
Proven, Experienced San Diego Stock Purchase Transaction Attorney
The Watkins Firm has supported San Diego businesses for decades and we have advised numerous business clients who are considering the same type of transaction you are evaluating. It is important to work with an experienced and proven San Diego stock purchase transaction attorney to help you consider every angle and evaluate all of the options before moving forward.
If you are considering an acquisition we invite you to review our podcast on mergers and acquisitions, the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
