Blog Archives

M&A Insights: The Challenge of Collecting $10 Million From a Guarantor

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

Posted in Problems with Deferred Purchase Price Tagged with: , , , , , , , , , , , , , ,

FORUM SELECTION CLAUSE IN M&A DEAL IMPACTS NONSIGNATORY RELATED COMPANY

Learn how a forum selection clause in an M&A deal affected a California supplier not directly involved in the acquisition agreement, leading to litigation in California. Read about the court’s ruling and its implications. M&A Stories June 10, 2021 Introduction:

Posted in enforce against nonparty, forum selection clause Tagged with: , , , , , , , , , , , , , ,

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: , , , , , , , , , , ,

Uncovering 2-Class Stock Issue in S Corporation M&A Deal

Discover the critical importance of confirming the S corporation status in M&A deals to avoid unexpected tax liabilities. Learn from a recent case where a two-class stock issue threatened the corporation’s qualification and how it was resolved. M&A Tax Stories

Posted in One class of stock, S corporation Tagged with: , , , , , , , , , , , , ,

Business Buyer’s Suit Against Seller is Hampered by Missing Due Diligence Binder

Learn about a crucial M&A case involving a buyer’s lawsuit against a seller due to missing due diligence binder. Explore the legal implications and lessons from Cardinal v. Lupo. October 29, 2019 Introduction: Purchasing a company involves legal risks, and

Posted in preservation of due diligence materials 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: , , , , , , , , , , , , ,

Navigating Indemnification Caps in M&A Deals

Explore the intricacies of indemnification caps in M&A deals and learn from a recent case dispute over their interpretation. Gain insights into risk mitigation strategies for buyers and sellers in the world of mergers and acquisitions. M&A Stories May 20,

Posted in indemnification cap, percentage of purchase price Tagged with: , , , , , , , , , ,

Business Seller Accuses Buyer of Earnout Manipulation

Explore a recent M&A case where a seller accused the buyer of manipulating earnings to avoid the earnout. Dive into the legal intricacies and lessons learned from Main Market Partners, LLC v. Olon Ricerca Bioscience LLC. M&A Stories May 16,

Posted in bad faith, earn outs Tagged with: , , , , , , , , , , , , , , , , , , ,

Pitfalls of Signing Closing Documents Prematurely: Lessons from Payne v. Cunningham

Explore the legal ramifications of signing M&A closing documents prematurely, illustrated through Payne v. Cunningham. This blog delves into a notable 2016 case involving a car dealership sale, highlighting the crucial importance of timing in avoiding unforeseen legal consequences. Learn

Posted in breach of contract, closing, damages, specific performance, stock purchase agreement Tagged with: , , , , , , , , , , , , , , , , , , , ,

Buyer Beware: Unforeseen Pension Liabilities in M&A Asset Deals

Dive into the complexities of M&A asset deals with our latest blog post, ‘Buyer Beware: Unforeseen Pension Liabilities.’ Explore the cautionary tale of a private equity group navigating the legal pitfalls of acquiring a Maui hotel and assets with unionized

Posted in federal multiemployer pension plan withdrawal liability, successor liability Tagged with: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

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