In this post-closing lawsuit, Unions comprised four jointly-managed multiemployer employee benefit plans. Seller was a Nebraska corporation which performed waterproofing, concrete and masonry restoration, and roofing services in Nebraska and the Midwest. Buyer was also a Nebraska corporation, performing commercial…
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New York federal court says dry cleaner asset buyer was not responsible for seller’s federal wage and hour liability
Seller was formed in 2007, which operated as a dry cleaning business in Manhattan that did business as Slayton Cleaners. Seller retained seven employees, including one front-desk attendant, one helper, two ironing persons, one spotter, one driver, and one tailor.…
Court says that the buyer of the assets of two restaurants can sue the seller for damages for inflating sales revenue
This is the story of a buyer of the assets of two restaurants who finds post-closing sales are 60% of the restaurants historic performance as shown on the financial statements provided to the buyer by the seller. Non-relevant facts have…
Posted in due diligence, fraud in business sale
Seller of business learns lesson about risks in an earn out
Today I want to talk about a seller of a business who learns how buyer’s problems can hurt his chances of receiving an earn out. Our story is drawn from a case that was tried before the nation’s oldest business…
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