Explore the complexities of collecting a $10 million promissory note from a guarantor in the aftermath of legal troubles. Gain insights from the Eli Global, LLC v. Cieutat case, highlighting the risks and impact on M&A deals. M&A Stories December…
Blog Archives
M&A Insights: The Challenge of Collecting $10 Million From a Guarantor
Posted in Problems with Deferred Purchase Price Tagged with: Alabama Supreme Court, Business Sale, Business Transfer, Eli Global LLC v. Cieutat, Financial Downturn, Founder, Guarantor, legal proceedings, Litigation, M&A, merger and acquisition, Private equity firm, promissory note, Purchase Price, risk management
SELLER’S FAILURE TO COLLECT DEFERRED PURCHASE PRICE FROM BANKRUPT ACQUISITION SUBSIDIARY’S OWNER
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: asset purchase agreement, Bankrupt Acquisition Subsidiary. Corporate Veil Piercing, Buyer's Parent Company Corporate Liability, Deferred Purchase Price, Mergers and Acquisitions (M&A), Parent Guarantee of Acquisition Subsidiary, Seller's Lawsuit, Trial court ruling, Undercapitalization
Buyer Can’t Blame Seller for Business Failure When Assisting in Manager Selection
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: Auto Parts Sorting Business, Business acquisitions, Business Failure, Buyer-Seller Consulting Agreement. Manager Selection, Industry Management Experience, Kentucky State Court, M&A legal blog, Personal Guaranty, Poston v. Welch Case
Why a Business Seller May Not Collect Payment from a Buyer’s Guarantor
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: Selling a business involves the risk of nonpayment for…
Posted in Problems with Deferred Purchase Price Tagged with: Business Seller, Buyer's Guarantor, Deferred Purchase Price, Financial Conditions, Indigo Old Corp. v. Guido, Lawsuit, M&A legal blog, promissory note, Purchase Price, Risk of Collecting Against Buyer Guarantor When There Is Bank Subordination Agreement, Subordination agreement
Recent Comments