The acquisition of a competitor – in whole or in part – is a sound growth strategy for any San Diego business. The structure of the transaction itself, as well as the due diligence to ensure the quality of the targeted assets or company, go a long way to ensuring the success of the strategy. The experienced mergers and acquisitions attorneys at Allen Barron have extensive experience in all aspects of this type of transaction. The unique blend of services provided by the professionals at Allen Barron keep transactional costs down while ensuring consistency and a better “big picture” understanding.
The primary decision in the acquisition is “stock purchase” or “asset purchase”? The stock purchase is used when you intend to acquire complete control of a competitor and all of the intellectual property, contracts and assets associated with their business. The key risk of a stock purchase is the exposure to the target company’s debts and contingent liabilities. Our skilled attorneys can help to minimize your risk, and offset unforeseen liabilities against the ultimate value paid to the present owner.
An asset purchase allows a business person to acquire the specific vehicles, real estate, personnel or customer base desired, without exposing your company to the risks associated with your competitor’s creditors and contingent liabilities. It is important to note (as we are located in a strong military town) that governmental contracts cannot usually be transferred in an asset sale.
Your goal is the acquisition of a competitor. The team at Allen Barron can provide advice and counsel during purchase negotiations, and help to structure a transaction that protects your interests. Our tax and accounting professionals help to forensically investigate the books of the target company to ensure that your expectations are backed up by solid financials and documentation. Our turnkey mergers and acquisitions team will help you to successfully acquire part or all of a competitor in order to accomplish your business growth goals.
Contact us for a free and substantive consultation at 866-631-3470.