Explore the legal complexities of a recent M&A case in Santa Clarita, California, where a buyer faced unexpected challenges related to the seller’s unfunded multi-employer pension plan obligation. Gain insights into the court’s decision and the implications for buyers in…
Monthly Archives: August 2018
Successful Acquisition: Buyer Prevails in Securing Vital Real Estate Leases from Bankrupt Nursery Business
Explore a compelling M&A story as a Houston-based buyer navigates the acquisition of crucial assets from a bankrupt California nursery. Delve into the court-approved transfer of vital real estate leases and the buyer’s financial strength, backed by a $58 million…
Posted in bankruptcy sale, distressed business acquisitions, leases Tagged with: anti-assignment lease clauses, appellate courts, Bankruptcy court, bankruptcy judges, bankruptcy law, Business acquisition, California nursery, Color Spot Holdings Inc., court reference, court-approved transfer, credit line, district court decision, financial strength, Houston buyer, In Re Color Spot Holdings Inc., legal hurdles, M&A success, positive cash flow, real estate leases, strategic acquisition
Texas Court Narrows Reach of Noncompete Agreement in Grocery Store M&A
Explore a significant M&A case in Texas where a court restricted the geographic reach of a noncompetition covenant in the sale of Hispanic grocery stores. The buyer, owner of La Michoacana and El Ahorro chains, faced noncompete breaches, leading to…
Posted in covenant not to compete, reformation Tagged with: appellate court, breach of agreement, business goodwill, Court of Appeals of Texas First District Houston, damages, El Ahorro, geographical area, Hispanic grocery stores, Houston, Irving, La Michoacana, limitations, M&A Case, Mi Rancho, noncompete agreement, Oklahoma, Oklahoma City, Ortega v. Abel, Pasadena, Punitive damages, reasonable noncompete, scope of activity, Texas, Texas court, time
Legal Misrepresentation in M&A: Lessons from a Costly Case
Explore a case study involving a Texas-based insurance-claims-adjusting firm’s acquisition gone awry due to legal misrepresentation. Learn about the impact on revenues, the role of due diligence, and the lessons for sellers in M&A transactions. Delve into the details of…
Posted in fraud in business sale Tagged with: acquisition case study, Appellate court ruling, business relationships, Buyer-seller negotiations, customer performance reports, due diligence, financial statements, fraud lawsuit, honesty in business transactions, insurance-claims-adjusting sector, legal misrepresentation, litigation in M&A, M&A legal blog, Purchase Price, QBE insurance company, Seller's obligations
Navigating M&A Challenges: Lessons from the Auto Industry’s Bankruptcy Sale
Explore a compelling M&A narrative delving into the complexities of acquiring distressed auto business assets during a chapter 11 bankruptcy. This blog examines a critical case involving the United Auto Workers pension fund, Fiat S.p.A., and the U.S. and Canadian…
Posted in actual notice to known creditors, bankruptcy sale, distressed business acquisitions Tagged with: airbag incident, asset transfer, Bankruptcy court, bankruptcy sale, buyer responsibilities, Buyer's responsibility, case reference, Chapter 11 bankruptcy, Chrysler, claims, dismiss case, distressed auto business, due diligence, Fiat S.p.A. U.S. and Canadian governments, insights, known creditors, legal dilemma, lessons, liens, M&A challenges, Material Safety Data Sheet (MSDS), notice period, Old Carco LLC, Pre-Closing Liabilities, United Auto Workers pension fund
Successor Liability: A Cautionary Tale for Asset Buyers in M&A Deals
Explore the intricate legalities of asset purchases in M&A through a cautionary tale. Delve into the Alabama Teachers Credit Union v. Design Build Concepts case, highlighting successor liability nuances, business continuity, and the impact of labeling transactions. Learn valuable insights…
Posted in successor liability Tagged with: Alabama law, Alabama Teachers Credit Union, asset purchase agreement, asset purchases, business continuity, buyer assurances, Buyer equity, buyer responsibility, Case Study, cautionary tale, construction business acquisition, construction defects, Court Case, Design Build Concepts, key personnel retention, Legal action, legal implications, legalities, M&A, M&A Transactions, merger, post-acquisition issues, seller's name usage, statute of limitations, successor liability
Dispute Erupts in Aerospace Acquisition: Battle Over Warranty Claims
Dive into the complexities of M&A as we unravel a recent legal dispute in the aerospace industry. Explore the intricacies of warranty claims, allocation of liabilities, and the aftermath of an acquisition gone awry. Gain insights from a real-life…
Posted in asset seller's liabilities, assumed liabilities, excluded liabilities, seller's warranty claims Tagged with: Accountability in M&A, Acquisition challenges, Aerospace Industry, Aerospace M&A, asset purchase agreement, Buyer-Seller Responsibilities, Court decisions in M&A, Delaware Superior Court, excluded liabilities, Industry-Specific Legalities, Legal dispute, liability allocation, M&A Legal Battles, Post-closing disputes, Spirit Aerosystems, Triumph Aerostructures, Warranty claims
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