Asset purchase transactions are often legally quite complex.  Too often an asset purchase contract is created and entered into without the comprehensive due diligence required to ensure clear title.  These transactions are much more than a bill of sale and researching the encumbrances which might exist on the asset(s) to be acquired.  The due diligence should extend to associated tax, accounting and business obligations of the seller to ensure contingent liabilities do not come back to haunt the buyer after the transaction is completed.

For example, Company A decides to sell some of it’s fleet of bucket trucks.  Many firms attempt to provide a low cost solution which simply ensures transfer of title to the trucks and a quick check of any associated loans or debts which might encumber the vehicles.  Company B purchases the bucket trucks believing they have clear title and satisfactory contracts.  However, Company A may be involved in a developing dispute with another business which ultimately leads to litigation.  During the course of this dispute the opposing party asks to review all transactions of Company A and learns that the bucket trucks were inappropriately sold to raise cash.  A Judge can order the reversal of the transaction and the buyer, Company B, is forced to return the vehicles after substantial cost and investment of time.

Asset purchase transactions are an excellent strategy for expanding your business and the opportunities available to you.  The experienced mergers and acquisitions attorneys at Allen Barron are supported by the integrated tax and accounting professionals who are much more qualified to conduct a thorough due diligence.  Allen Barron clients value the security and confidence of knowing their asset purchase transactions are carefully analyzed and documented to ensure clear title is established and transferred, without the concern for future contingent liability.  If you are considering an asset purchase we invite you to contact us for a free consultation at 866-631-3470.  Learn about the advantage of our integrated legal, tax and accounting services and how we are uniquely structured to deliver smoother transactions in a timely and cost-effective manner for our clients.

Contact an Estate Planning, Business Law Or Tax Attorney Today

To set up a free, no-obligation consultation with one of our knowledgeable San Diego based estate planning, business and tax lawyers, or learn more about our tax preparation, accounting and business advisory services call us at 866-631-3470 or contact us.