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SELLER FAILS TO COLLECT DEFERRED PURCHASE PRICE FROM OWNER OF BANKRUPT ACQUISITION SUBSIDIARY

The owner of the acquisition subsidiary did not guarantee the obligations of the bankrupt acquisition subsidiary. The court rejected the seller’s attempt to pierce the corporate veil of the acquisition subsidiary to collect from its owner. M&A Stories August 01,

Posted in Problems with Deferred Purchase Price Tagged with: ,

BUYER OF A BUSINESS THAT FAILS CAN’T BLAME SELLER WHO HELPS PICK NEW MANAGER

The seller stayed on under a temporary consulting arrangement. At buyer’s request the seller helped pick a president for the buyer to manage the business. It did not work out and the business failed. M&A Stories April 15, 2022 Introduction

Posted in Problems with Deferred Purchase Price, Problems with post-closing management of business Tagged with: ,

BUSINESS SELLER CANNOT COLLECT ON BUYER’S NOTE FROM BUYER’S GUARANTOR BECAUSE SELLER SUBORDINATED ITS BUYER NOTE TO BUYER BANK LOAN

The subordination agreement entitled the bank to be paid ahead of the seller unless the buyer met certain financial conditions designed for the bank’s security M&A Stories April 11, 2022 Introduction A seller of a business risks nonpayment of the

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