The most recent Sound Business Insights podcast has been released.  It is Episode 13 – Mergers and Acquisitions where Dan Watkins provides helpful analysis of an important business topic: Mergers and Acquisitions or M & A.  On the one side is mergers – where you choose to combine forces and do business with another entity (or entities).  On the other side is the acquisition of part of a company’s assets – an asset purchase – or the entire company itself – a stock purchase.

In Episode 13 – Mergers and Acquisitions Neil and Dan discuss the complex issue of M & A and why it is so important to conduct due diligence.  There are so many details which must be completely accurate to ensure a successful acquisition or merger.  When acquiring an asset or group of assets, you need to make sure you are receiving clear title to that specific asset with a comprehensive description of the asset to be acquired.  One must also make sure there are no encumbrances against the asset you wish to purchase.

When you purchase a company through a stock purchase there are a lot of items on the “checklists.”  Multiple checklists.  One must examine every aspect of the company you wish to acquire.  Yes, with a stock purchase you are stepping into the shoe’s of the present owner, but this can expose you to substantial risk and contingent liabilities.  The agreements must ensure the accuracy of the books and all disclosures, the protection of existing assets including customers, employees and goodwill, the disclosure of any disputes or potential legal or financial issues and a host of other issue.

Episode 13 – Mergers and Acquisitions is a good introduction to the topic of how to acquire part or all of a business or to join forces to accomplish greater things.  We invite you to listen to our new podcast Episode 13 – Mergers and Acquisitions, review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.