Keith Broady participated in a webinar by The Knowledge Group on June 9, 2016 on Asset Purchases: Techniques and Best Practices to Avoid Successor Liability. Keith spoke on the four theories of successor liability and application of those theories to various claims, and defenses and statutes of limitations.
As a general rule, a successor company will be held liable for its predecessor’s debts and liabilities in the merger or consolidation of the two parties. On the other hand, an asset purchaser does not assume the liabilities of its seller. One practical method to avoid successor liability is to acquire a limited number of assets rather than the whole business. Moreover, asset purchasing is often the preferred acquisition structure as an asset purchase agreement clearly distinguishes the liabilities between parties.
In this two-hour Webcast, a panel of key thought leaders and practitioners assembled by The Knowledge Group will discuss potential problems that may arise during corporate asset sale transactions and structuring. The panel will provide the best practices and techniques in mitigating the risk of corporate successor liabilities in asset purchases.
Key topics include:
- Asset Purchasing: Methods
- Assumptions of Liabilities: Legal Framework and Boundaries
- Successor Liability Claims: General Rules
- Common Acquisition Violations
- Potential Litigation Risks
- Possible Sanctions and Liabilities
- Best Compliance and Enforcement Practices
- Up-to-minute regulatory updates