Blog Archives

Asset Buyer’s Liability for Pre-Closing Product Issues in M&A Deals

Explore the complexities of managing product liability risks in M&A transactions. This blog post discusses a case involving an asset acquisition, product liability claims, and the buyer’s defense against successor liability. Learn about the court’s ruling and the implications for

Posted in sale of product line, successor liability Tagged with: , , , , , , , , , , , ,

Dispute Over $4.4 Million Adjustment in M&A Deal Linked to EBITDA

Explore a recent M&A case involving a $4.4 million adjustment dispute tied to EBITDA calculations. Learn about the legal intricacies and implications for purchase price agreements. M&A Stories October 9, 2020 Introduction: In the context of acquisitions, the cost frequently

Posted in determination of purchase price adjustment, EBITDA, purchase price adjustment Tagged with: , , , , , , , , , ,

Enforcing Liquidated Damages in M&A Deals: A Lesson from a Real Case

Explore a cautionary tale from the world of mergers and acquisitions. Learn about a case where a buyer’s commitment to pay $6.5 million in liquidated damages became the focal point of legal action. Understand the significance of well-negotiated clauses in

Posted in certificate of need, deferred closing, governmental approval, liquidated damages provision Tagged with: , , , , , , , , , ,

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

Posted in asset purchase, payroll tax, successor liability Tagged with: , , , , , , , , , ,

Can Buying a Business’s Assets Make You Responsible for Existing Contracts?

Explore the legal implications of purchasing a business’s assets instead of the entire company. Learn how seemingly innocuous actions can lead to contract assumption and potential liabilities, as illustrated by a real case involving a bar purchase in Boise. May

Posted in asset seller's liabilities, implied assumption of seller contract/liability Tagged with: , , , , , , , , , , , , , ,

Safeguarding Purchase Price in Business Sales to Avoid Buyer Bankruptcy Discharge

Learn how to protect the purchase price in business sales to prevent buyer bankruptcy discharge. Explore a real case example and key takeaways for secure transactions. April 20, 2020 Introduction: When a business seller agrees to receive a significant portion

Posted in seller carried purchase price Tagged with: , , , , , , , , , , , , , ,

Buyer Bound by Bankruptcy Court’s Sale Order Despite Non-Signing of Purchase Agreement

Explore a case involving a Section 363 bankruptcy sale where a buyer’s liability was upheld by the court despite not signing the purchase agreement. Gain insights into the legal implications of court-approved sales orders in distressed business acquisitions. March 11,

Posted in bankruptcy sale, distressed business acquisitions, sales order, Section 363 sale Tagged with: , , , , , , , , , , ,

Jilted Seller Wins $5.7M Judgment After Reliance on Broken Promise

Learn about a significant legal case where a jilted seller secured a $5.7 million judgment due to a broken promise during business negotiations. Gain insights into the importance of transparent communication and the legal implications of unfulfilled commitments. January 24,

Posted in promissory estoppel Tagged with: , , , , , , , , , , ,

Buyer’s Responsibility for Asbestos Claims Punitive Damages

Explore the implications of punitive damages in asbestos claims within M&A deals. Learn from the case of Parker Hannifin Corp. v. Standard Motor Products, Inc. October 31, 2019 Introduction: Liability related to asbestos claims is a common concern for manufacturing

Posted in asbestos claims, indemnification, punitive damages Tagged with: , , , , , , , , , , ,

Business Buyer Sues Former Employee Over Use of Seller Business Cards

Explore a legal case where a buyer filed a lawsuit against a former employee who left with business cards belonging to the seller’s clients after an M&A deal. Learn about the legal implications and challenges in protecting trade secrets in

Posted in business cards, trade secret misappropriation by former seller employee Tagged with: , , , , , , , , ,

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