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Sellers Buying a Business

Whiteford

Net Working Capital & Purchase Price Adjustments In M&A Deals

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Net Working Capital (“NWC”) targets and purchase price adjustments are a nearly universal reality in private M&A deals, though often a neglected and misunderstood topic. To greatly simplify, the NWC target is the minimum...more

Tonkon Torp LLP

You’re Not the Boss Anymore

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It’s nice to get paid. Giving up control of your business? Well… that’s a different story. On closing the sale of a business, owners realize a dramatic financial return on their investment. However, few buyers are willing to...more

Venable LLP

Earnouts and Their Tax Treatment

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As buyers and sellers engage in negotiations for the sale of a business, often there may be disagreements as to the value and expected growth of that business. One party might currently value the business higher than the...more

Buckingham, Doolittle & Burroughs, LLC

Selling a business in the current high-deal volume environment

Selling a business in any environment can be challenging when planning is not addressed early in the M&A process. The challenges are heightened in the current environment where buyers are looking at multiple potential deals...more

Bradley Arant Boult Cummings LLP

Buying Distressed Operations in the Skilled Nursing Facility Space

The “Nursing Home Covid-19 Data Dashboard” maintained by the Centers for Disease Control and Prevention (CDC) shows that COVID-19 had an unusually intense impact on the long term care community. Cases among nursing home...more

Sheppard Mullin Richter & Hampton LLP

7 Key Value-Adding LOI Terms

A well-crafted letter of intent (“LOI”) adds value for the negotiating principals by helping to ensure the parties are in agreement on key deal terms before they spend significant time and money on diligence and definitive...more

Baker Donelson

Delaware Invalidates a Selling Stockholder's Non-Compete Covenant: What the Kodiak Building Partners, LLC v. Philip D. Adams...

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In drafting restrictive covenants, acquiring companies should be aware that courts may not necessarily uphold, or even "blue pencil" (revise overbroad restrictive covenants), restrictive covenants imposed on sellers in an...more

Goulston & Storrs PC

Target Counsel Legal Opinions (UPDATED)

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Market Trends: What You Need to Know - One of the most pronounced practice-related trends in private company merger and acquisition transactions is the near-disappearance of target legal opinions as a closing deliverable. ...more

Morris James LLP

Chancery Addresses Contract and Fraud Claims Relating to M&A Post-Closing Price Adjustments

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Roma Landmark Theaters, LLC v. Cohen Exhibition Co., LLC, C.A. No. 2019-0585-PAF (Del. Ch. Sept. 30, 2020) - In Roma Landmark Theaters, the parties’ purchase agreement contained a framework for post-closing price...more

Downs Rachlin Martin PLLC

Buying or Selling a Business that Borrowed a PPP Loan

There is a significant likelihood that M&A transactions in the next year may involve PPP loans. Here are several deal components that should be considered in light of PPP....more

Goulston & Storrs PC

The Sandbagging Conundrum Explained

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There is perhaps no more consistently vexing problem for transactional attorneys on opposite sides than figuring out a fair contractual resolution for “sandbagging” issues....more

Buckingham, Doolittle & Burroughs, LLC

Planning Beyond The Sale Of A Business: Understanding Working Capital Adjustments

• The most common post-sale dispute involves determining the working capital of the sold business. • In planning for the sale, the parties should agree on what is a normal working capital amount, as well as the elements of...more

Ward and Smith, P.A.

Selling Your Business: It Starts Before the Sale

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...The sale process doesn’t happen overnight, and there are many things before the sale that can greatly impact the sale. However, positioning your business in the best possible ways for sale has a wide range of meaning....more

Morris James LLP

When Is a Seller's Word His Bond?

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Every transaction to some extent is based on trust. At least a buyer trusts that a seller is not actively trying to defraud him. But, when is that trust reasonable? That question is important because a buyer claiming fraud...more

White and Williams LLP

Delaware Court Enforces Strict Compliance With Notice Provisions

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The Delaware Chancery Court issued a recent opinion that provides a warning for parties to contracts: strictly follow the notice instructions set forth in the agreement or otherwise jeopardize contractual rights under the...more

McGuireWoods LLP

Running a Smooth Sale Process: Tips for Sellers – 5 Key Points

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We were pleased to have record-breaking attendance at our annual Healthcare & Life Sciences Private Equity and Lending Conference. The deep-dive discussions into various sectors, and on the industry and deal-making generally,...more

Jones Day

Delaware Supreme Court Reverses Chancellor's Chicago Bridge Ruling - Authority of Independent Auditor to Resolve Purchase Price...

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In a much-anticipated decision, on June 27, 2017, the Supreme Court of Delaware reversed the Chancery Court's ruling in Chicago Bridge v. Westinghouse. The Delaware Supreme Court determined that an independent auditor...more

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