Learn about a legal case where a buyer was refunded $3.5 million due to an unemployment tax issue that arose after an M&A deal. Understand the importance of considering unemployment compensation tax when acquiring a business with employee turnover. July…
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Buyer Refunded $3.5M Due to Unemployment Tax Issue in M&A Deal
Posted in seller's unemployment experience rating, successor liability Tagged with: Business acquisition, business assets, buyer refund, employee turnover, human resource service provider, legal battle, Legal Case, M&A deal, successor employer, Texas Workforce Commission, unemployment compensation tax, unemployment tax issue
Potential $100 Million Payroll Tax Liability for Buyers in M&A Asset Deal
Discover the legal implications of inheriting unpaid payroll taxes in M&A asset deals. Learn from a real case involving a buyer facing a $100 million liability. Insights on managing risks and mitigating potential tax liabilities. June 30, 2020 Introduction: When…
Bankruptcy Court Rejects Creditor’s Claim Against Buyer in Post-363 Successor Liability Dispute
Learn about a recent bankruptcy case involving a struggling popsicle business and the legal challenges faced by the buyer. Discover how the court’s ruling highlights the importance of using Bankruptcy Code Section 363 to acquire distressed businesses and avoid successor…
Buyer’s Lengthy Legal Battle Over $58 Million Pension Claim from Seller’s Union
Explore a complex M&A legal case involving a buyer’s struggle against a $58 million pension claim from a seller’s union. Learn how successor liability and careful structuring played a role. April 3, 2020 Introduction: When a business asset buyer acquires…
Posted in federal multiemployer pension plan withdrawal liability, successor liability Tagged with: Asset acquisition, buyer's legal battle, M&A legal case, multiemployer plan, pension fund dispute, pension liability, seller's underfunded pension, successor liability, union pension claim, withdrawal liability
Creative Stock Acquisition: Unpacking the $10 Million Tax Costs and Interest
Explore a recent M&A case involving a creative stock acquisition strategy with unexpected tax consequences. Learn how an IRS ruling imposed $10 million in penalties and interest on investors. Get insights into the legal complexities of midco transactions and their…
Posted in asset vs stock deal, midco transaction, tax penalties and additions, transferee liability for taxes IRC Section 6901, Uniform Fraudulent Transfer Act or Uniform Voidable Transfer Act Tagged with: Alta V Limited Partnership, Asset acquisition, Business Sale, case analysis, creative tax planning, interest, investor liability, IRS Ruling, legal complexities, M&A legal blog, midco transaction, penalties, stock acquisition, tax consequences, Tax Court
Business Buyer Pays Reasonably Equivalent Value Liable to Seller Lessor Under UFTA
Introduction One legal risk of buying a distressed business is having to pay a seller creditor for an unassumed APA liability even when the buyer paid fair market value for the business. The deal The buyer in this case was…
7th Circuit Decision on Superfund Allocation in Business Purchase
Explore a pivotal legal case where a buyer acquired an environmentally contaminated steel mill and sought to recover cleanup expenses under CERCLA. Discover the court’s decision and its implications for M&A deals with environmental liabilities. September 13, 2019 M&A Stories…
Posted in CERCLA or superfund liability, successor liability Tagged with: 7th Circuit Court of Appeals, business purchase, CERCLA, Cleanup expenses, Environmental liabilities, Environmental pollution, Indiana federal district court, Legal dispute resolution, Legal precedent, liability allocation, M&A legal blog, Pollution cleanup, Steel mill acquisition, Superfund allocation, Valbruna Slater Steel Corporation v. Joslyn Manufacturing Company
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