Your proven mergers and acquisitions attorney at the Watkins Firm has more than 40 years of experience in these legally and financially complex transactions. A merger, stock purchase or asset purchase is, by it’s nature, fraught with risk and contingent liabilities. You need insightful guidance on all aspects of the transaction from initial conversations to the Letter of Intent (LOI), through due diligence and ultimately the creation of a contract to consummate the transaction and move the parties through the transition of ownership.
Did You Know More than 70% of M & A Transactions Across the United States Fail?
According to the Harvard Business Review and several substantial collegiate studies the odds that a merger or acquisition transaction will fail lies between 70% and 90%. This is an astounding fact. The primary factors cited include the failure to achieve accurate valuation, the inability to integrate the corporate cultures of the associated businesses and unforeseen risks and challenges due to poor due diligence.
Mergers and acquisitions provide the greatest opportunities for business growth and success. They also represent some of the greatest risks your company will face in the course of its business life.
Did You Know The “Vast Majority” of Watkins Firm M & A Transactions are Successful?
You need to ask Dan Watkins, our founding partner and your proven mergers and acquisitions attorney at the Watkins Firm, about the astounding track record of success our mergers and acquisitions clients have enjoyed over more than 40 years here in San Diego and Southern California. “I’m not sure what the actual number but the vast majority of our M & A transactions over 40 years have been a success. Our experience, proprietary due diligence checklists and M & A contracts and documents, thorough due diligence and powerful contracts have resulted in a hugely successful track record in these complex transactions. We pay attention to the details, and protect our clients while working to facilitate and close successful transactions for our clients.”
What is the difference between a 70+% failure rate nationally and a nearly 90+% success rate for Watkins Firm M & A transactions? The answers are straightforward: 40+ Years of Experience, Proven Proprietary Due Diligence Checklists, Skillful Transaction Attorneys who Facilitate the Successful Atmosphere of the “Deal”, and proven documents and contracts from our proprietary library of battle-tested, successful M & A transactions.
Asset Purchase or Stock Purchase?
We are often asked about the differences between a stock purchase and an asset purchase, and which one is the better vehicle? They are two completely different business acquisition strategies, and they are employed to accomplish differing objectives. The primary difference is the extent of the liability that passes from the seller to the buyer, as well as the ability to continue existing government contracts and use of trade names and intellectual property.
In a stock purchase you are buying the entire business, including all of its outstanding debts and liabilities. This is especially important when the company has specific types of contracts that you wish to preserve, such as contracts with governmental agencies. There may be patents, trademarks, copyrighted materials or other intellectual property you wish to control, and this usually requires a stock purchase. However, the buyer assumes all of the risk associated with the existing business including any present or future legal disputes, and liabilities. There are protections we advise our clients to put into place, and these contracts must be carefully constructed and executed.
Asset purchases are much more specific, and are used to convey specific property, materials, real estate or even a corporate division from one business entity to another. This is an effective option for purchasing a manufacturing facility, a fleet of vehicles or even a portion of business that is no longer a good fit for the parent company but enhances your own business model. Asset purchases limit your liability, but they also may limit what you are able to purchase.
Your Proven Mergers and Acquisitions Attorney at the Watkins Firm in San Diego
Your proven mergers and acquisitions attorney at the Watkins Firm in San Diego will add substantial power and success to your side of the equation in these legally and financially complex transactions. We will apply our more than four decades of experience, proprietary library of documents and contracts, due diligence checklists and strategies and proven dealmaking, sound counsel and legal guidance to help you to complete a successful acquisition and move your business objectives forward.
If you are considering a merger, stock purchase or asset purchase transaction, or have questions regarding mergers and acquisitions in San Diego and Southern California we invite you to review our recent 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.
