Blog Archives

Resolving M&A Seller Earnout Disputes: Beyond Accountant Arbitration

Delve into the intricacies of M&A earnout disputes with our latest blog post. Explore the complexities beyond accountant arbitration, as we dissect a notable case and offer insights into drafting M&A agreements for clarity and foresight. M&A Stories May 9,

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Navigating M&A Earnout Disputes: A Lesson from Nomar Enterprises, LLC v. Rugged Solutions America, LLC

Explore the intricate world of M&A transactions through our latest blog post, ‘Navigating M&A Earnout Disputes: A Lesson from Nomar Enterprises, LLC v. Rugged Solutions America, LLC.’ Uncover the strategic use of earnouts, the risks they pose for both buyers

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BUYER MUST RETURN UNUSED PORTION OF $250K WARRANTY DEPOSIT TO SELLER

The asset purchase agreement did not say that the unused portion of the deposit was to be returned to the seller. The court said the unused portion of the deposit was refundable and a refund two years after the closing

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EARNOUT PROVISION DISQUALIFIES PURCHASE OFFER IN FRANCHISE AGREEMENT DISPUTE

California intermediate appellate court holds that offer was not bona fide. The earnout disqualified the offered purchase price from being “in a dollar amount.”  M&A Stories August 09, 2021 Introduction: When purchasing a business from a franchisee, there are additional

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ACCOUNTING ERROR IN M&A DEAL COULD COST BUYER $38 MILLION

Explore a real-life M&A case where an accounting error led to a potential $38 million overpayment by the buyer. Learn about the conflict, court ruling, and the lessons to be learned from this situation. M&A Stories March 04, 2021 Introduction:

Posted in purchase price adjustment, tangible net worth Tagged with: , , , , , , , , , , ,

Arbitration in Business Acquisitions when Real Estate Involved

Explore the complexities of arbitration in business acquisitions involving real estate. Discover how arbitration clauses may not always prevent disputes from reaching court, as highlighted by the BLW Motors, LLC v. Vicksburg Ford Lincoln Mercury, Inc case. Gain insights into

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Federal Court Decides Arbitration for Purchase Price Dispute in M&A Deal

Explore a recent case involving a stock acquisition where a federal court determines jurisdiction and resolves post-closing calculation disputes through arbitration. Learn how the court’s decision impacts M&A agreements. Case reference: FNB Corporation v. Mariner Royal Holdings, LLC. May 24,

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Seller’s Owner Found Liable to Pay Buyer’s $1.7 Million Legal Fees: A Lesson in Contractual Guarantees

Explore a significant M&A legal case where a seller’s owner was held liable to pay $1.7 million in buyer’s legal fees. Learn how contractual guarantees and dispute resolution methods impact post-acquisition disputes. Case analysis of Summers Laboratories, Inc. v. Shionogi

Posted in Attorney's Fee Provision, Guaranty Tagged with: , , , , , , , , , , ,

Court Decides EY Earnout Calculation as Arbitration, Not Expert Determination

Learn about a recent M&A case where a court ruled on the nature of an Ernst & Young earnout calculation, determining it as arbitration rather than expert determination. Get insights into the legal conflict and the court’s ruling. November 19,

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Forum Selection Clause in Buyer’s Note for Company Acquisition

Explore the importance of forum selection clauses in M&A deals. Learn from the case of Robson v. Duckpond LTD. where a forum selection clause determined the location for resolving disputes over a buyer’s promissory note in a company acquisition. October

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