Blog Archives

DISPUTE ARISES BETWEEN BUYER AND SELLER OVER NET SALES IN $1.7 MILLION EARNOUT CASE

Buyer claims that earnout is based upon the post-closing net sales of seller’s small box chassis products. The seller claims that earnout includes net sales of small box chassis products acquired by buyer from other sellers. M&A Stories September 20,

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How Tax Due Diligence Benefits Buyers in Stock Acquisitions

Explore the significance of tax due diligence in stock acquisitions to avoid unexpected tax liabilities and legal disputes. Learn from a real case scenario where a buyer faced post-closing tax debts and legal battles due to inadequate tax assessment. “Trust,

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Enforcing Unwritten Promises: Manager’s Share in APA Purchase Price

Explore a case where verbal promises to key employees in business sales led to legal complications. Learn how unwritten agreements can affect M&A deals and the importance of documenting such agreements. February 19, 2020 Introduction: It’s common for business sellers

Posted in oral contract, statute of frauds Tagged with: , , , , , , , , , , , , ,

Extending Contractual Timeframes in M&A Deals Under Delaware Law

Explore the implications of Delaware law on survival periods and statute of limitations in M&A agreements. Learn how a recent case, Kilcullen v. Spectro Scientific, Inc., sheds light on extending timeframes for indemnification claims. September 6, 2019 M&A Stories Introduction:

Posted in extension by contract in Delaware, indemnification, statute of limitations, survival of reps and warranties, tolling Tagged with: , , , , , , , , , , , ,

M&A Confidentiality: Protecting Valuable Customer Data

Learn about the importance of safeguarding confidential information in M&A deals and the legal battles that can arise when confidentiality agreements are breached. M&A Stories May 9, 2019 Introduction: In the world of business acquisitions, safeguarding confidential information is paramount.

Posted in covenant not to compete, public information exclusion Tagged with: , , , , , , , , , , , , ,

Pharmacy Sale Earnout Dispute: Buyer’s Good Faith Questioned in Court

Explore a real M&A case where an earnout agreement led to a legal dispute. Learn how buyer-seller dynamics and the duty of good faith played a crucial role in the court’s decision. M&A Stories March 19, 2019 Introduction: When buyers

Posted in purchase agreement Tagged with: , , , , , , , , , , , , , , , , ,

Disputes Over Earnout Calculations: A Cautionary Tale

Explore the intricacies of earnout disputes in M&A deals with a focus on the Warren Hill, LLC v. SFR Equities, LLC case. Learn key takeaways and how to prevent similar conflicts. M&A Stories February 27, 2019 Introduction: In the world

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Energy Drink Acquisition: Legal Battle Over Formula Restrictions

Explore the legal battles surrounding energy drink acquisitions and formula restrictions. Learn from the case of Innovation Ventures, LLC v. Custom Nutrition Laboratories, LLC. M&A Stories January 2, 2019 In 2004, a well-known energy drink manufacturer partnered with a company

Posted in asset purchase agreement, assumed liabilities, assumption of a contract, assumption of contract by incorporation by reference Tagged with: , , , , , , , ,

Pitfalls of Signing Closing Documents Prematurely: Lessons from Payne v. Cunningham

Explore the legal ramifications of signing M&A closing documents prematurely, illustrated through Payne v. Cunningham. This blog delves into a notable 2016 case involving a car dealership sale, highlighting the crucial importance of timing in avoiding unforeseen legal consequences. Learn

Posted in breach of contract, closing, damages, specific performance, stock purchase agreement Tagged with: , , , , , , , , , , , , , , , , , , , ,

Upholding Noncompetition Covenants: Safeguarding Business Value

Explore the intricacies of M&A legal battles and the crucial role of noncompetition covenants in safeguarding business value. Delve into the Shimon v. Paper Enters., Inc. case, revealing insights into the enforcement of noncompete clauses, potential damages, and legal actions.

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