How should you structure the transaction to sell your San Diego company? Should you use a stock purchase or asset purchase to complete the sale? The experienced mergers and acquisitions attorneys at the Watkins Firm have decades of experience in these complex transactions. We can guide you through the process of selling your business from start to finish and protect your interests along the way.
Generally speaking, most sellers are interested in a Stock Purchase agreement. The stock purchase passes all assets, debts and liabilities of your company entirely to the seller allowing you to walk away without contingent liabilities. This may be required in order to allow a buyer to take control of specific assets such as government contracts and some intellectual property. However, most buyers wish to structure the transaction using an asset purchase agreement in order to specifically protect themselves from unforeseen expenses, debts or contingent liabilities. Which is best for you?
Our attorneys understand the nature of a “business deal” and the importance of preserving a positive working environment throughout the negotiation of contracts, due diligence, valuation and ultimately the close of the transaction. The structure of the transaction will be negotiated based upon your strength as a seller, and your willingness to concede appropriately to entice the buyer to pay top dollar for your company. There are several methods used to establish the valuation of your business, and our attorneys work closely with independent experts to protect your position and maximize value.
Selling a business can be quite legally complex, but the experience doesn’t have to be a painful one. We guide you through each step of the process, including the decision between a stock purchase or asset purchase transaction. We provide insightful advice and protect you from potential pitfalls based upon our decades of experience and expertise in these transactions. If you are considering the sale of your business we invite you to contact us for a free consultation at 858-535-1511.