Episode 40 - Stock Purchase Agreements

In Episode 40 - Stock Purchase Agreements Dan Watkins discusses one of the most complex legal and financial transactions a business can undertake: a stock purchase.  What makes the stock purchase such a risk and how can the 40+ years of experience at the Watkins Firm in literally thousands of these transactions increase the likelihood of success in your acquisition or sale?

The Harvard Business Review recently cited multiple long-term collegiate studies which concluded the probability of success in a business merger or stock purchase acquisition was 30% or less.  In those transactions which were unsuccessful the target of the acquisition is either resold (at a loss) or outright closed within five years.  The Watkins Firm's track record of success is 85% to 90% in the words of Dan Watkins.  What makes the difference?

In Episode 40 - Stock Purchase Agreements we discuss the goals of the buyer and the seller and how to bring the two interests together to create a successful transaction.  What are the goals of the buyer?  The primary goal is usually to acquire the company while protecting existing relationships, revenue and goodwill through the transaction and into the future.  Taxes are a consideration for both the buyer and the seller.  The seller is obviously interested in achieving top dollar for their company and has an interest in making sure the buyer achieves their goals while the seller is either immediately or eventually free to take their earnings and move forward with their own goals and objectives.

Episode 40 - Stock purchase agreements is an insiders look at these complex business and financial transactions.  Why is due diligence the key to a stock purchase acquisition? How can the experience, proprietary due diligence checklists and contracts (such as the Letter of Intent or LOI) of the Watkins Firm increase the likelihood of success in your transaction?  How does the covenant of good faith and fair dealing apply to these transactions?  Access the insight of a business attorney with more than 40 years of experience and thousands of successful stock purchase transactions.