Explore a real M&A case where a seller’s risk-laden exit plan crumbled as the buyer defaulted on payments. Gain insights into the legal dispute and learn valuable lessons on safeguarding transactions. M&A Stories December 07, 2020 Introduction: Selling a business…
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Buyer’s Post-Closing Default Shatters Seller’s High-Risk Exit Plan
Posted in Guaranty, securing buyer's note, securing deferred purchase price, security agreement, seller carried purchase price Tagged with: asset purchase agreement, buyer's owner liability, collateral, Legal dispute, LLC, M&A, post-closing default, Purchase Price, risk management, seller's exit plan
The seller of a bar and grill business should have secured Buyer’s note with the bar and grill assets
Today I want to talk about how a seller of an Ohio bar and grill business (we will call “Seller”) learned a painful lesson about how to handle a buyer (“Buyer”) who does not make his promised post-closing purchase price…
Posted in securing buyer's note
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- revenue and profit projections
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- time of the essence
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- typo or scriverner's error
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- unliquidated or disputed claim
- unwanted assets
- vacation time
- valuation
- value added tax or VAT
- waiver of contractual provision
- waiver of jury trial
- waiver of removal to federal court
- waiver provision
- willful breach carveout
- willing buyer or procuring cause
- Withholding Post-closing payments
- working capital adjustment
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