Blog Archives

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: , , , , , , , , , ,

Buyer Refunded $3.5M Due to Unemployment Tax Issue in M&A Deal

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

Posted in seller's unemployment experience rating, successor liability Tagged with: , , , , , , , , , , ,

$2.8 Million Tax Consequences Arising from Incorrect Subsidiary Sale Structure

July 6, 2020 Explore a case study highlighting the significant tax implications resulting from an incorrect subsidiary sale structure in a business acquisition. Learn from the legal dispute and its aftermath, emphasizing the importance of accurate acquisition documents and coordination

Posted in mutual mistake, structure of transaction, Taxation Tagged with: , , , , , , , , , , , , , , , ,

Court Denies Buyer’s Request for Injunction in M&A Dispute Due to Absence of Ongoing Arbitration

Read about a recent M&A dispute where a buyer’s request for an injunction was denied due to the absence of ongoing arbitration. Learn how the court’s decision highlights the importance of precise contractual language. Case reference: NUMSP, LLC v. Etienne.

Posted in arbitration, TRO/preliminary injunction before filing for arbitration 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: , , , , , , , , , , , , , ,

Buyer’s Problem with Business Seller Failing to Pay Invoice of Valuable Vendor

Explore a recent legal case highlighting challenges in M&A transactions when business sellers fail to pay critical vendor invoices. Learn how clear agreements and meticulous contract drafting can prevent uncertainties and potential conflicts. Case reference: Continental Motors, Inc. v. Danbury

Posted in Buyer payment of seller retained liabilities Tagged with: , , , , , , , , , ,

Safeguarding Purchased Customer Information through Nondisclosure Agreements in M&A Deals

Learn how including a covenant in your acquisition agreement can prevent sellers from disclosing or utilizing customer data, even if it’s not classified as a trade secret. Explore a real case involving a seafood wholesaler and importer. March 31, 2020

Posted in customer list, customer list, nondisclosure agreement, trade secret misappropriation Tagged with: , , , , , , , , ,

Buyer Needs Owner’s Consent for Using Seller’s Trademark with Owner’s Photo

Learn about a recent legal case highlighting the importance of obtaining the owner’s consent when using seller’s assets, such as trademarks with owner’s photo, during business acquisitions. Explore the details of the case and key takeaways for a smooth transition

Posted in Intellectual Property, misappropriation of likeness, photo or image Tagged with: , , , , , , , , , ,

Business Buyer Battle’s Seller’s Founder Over His Publicity Rights

Explore the legal dispute between a business buyer and a competitor over the use of a founder’s name for product promotion. Learn about the key court decision and its implications. October 21, 2019 Introduction: In the world of business acquisitions,

Posted in personal goodwill, Right of publicity Tagged with: , , , , , , , ,

How a Fraud Carve-Out Protected a Buyer’s Employee Non-Solicitation Claim in an M&A Deal

Explore a case study where a fraud carve-out provision played a crucial role in protecting a buyer’s interests in an M&A deal. Learn about the legal intricacies surrounding employee non-solicitation claims and exclusive remedy provisions. October 19, 2019 Introduction: Many

Posted in boilerplate provisions, fraud carveout, hiring seller's employees, nonsolicitation of employees and customers Tagged with: , , , , , , , , , , , , ,

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