Monthly Archives: November 2020

Buyer of Treadmill Maker Did Not Assume Implied Merchantability Warranty

M&A Stories November 18, 2020 Introduction A buyer of a manufacturer often prefers an acquisition of assets as opposed to equity of the seller in order to minimize the risk of post-closing product liability claims. The deal This deal involved

Posted in assumption of a contract, implied warranty of merchantability, seller's warranty claims, successor liability Tagged with: ,

Stalking Horse Loses Acquisition Bid Over Value of Proposed PPP Loan Assumption

M&A Stories November 17, 2020 Introduction A financially distressed company often ends up selling its business in bankruptcy. The sale is conducted in an auction based upon a negotiated asset purchase agreement with a stalking horse. The deal The bankrupt

Posted in bankruptcy sale, distressed business acquisitions, PPP loan assumption, Section 363 sale Tagged with: ,

Franchise Asset Buyer Didn’t Inherit Seller’s Unemployment Tax Experience Rating

M&A Stories November 2, 2020 Introduction A company’s unemployment insurance liability depends upon its experience rating; the employee turnover history of the business. A buyer of the assets of a business usually starts with a lower unemployment liability than the

Posted in franchise sale, seller's unemployment experience rating Tagged with:

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