TELESEMINAR: Asset Purchase Deals: Securing Value & Limiting Liability, Part 1 – A National Perspective
February 11, 2013
12:00 – 1:00 p.m.
1.00 MCLE hours
In a difficult economy, “asset deals” are much more prevalent than “stock deals.” The buyer prefers to acquire only specific assets of the seller rather than the seller’s entity and the liabilities and other troubles that may go with it. The seller prefers a “clean” deal, where the buyer takes the entity, all of its assets, employees and operations and liabilities. But even when a seller agrees to an asset-only sale, there are real limits to the structure. Among others, common law and statute frequently impose successor liability on the asset buyer. This program will provide you with a real world guide to planning, structuring and drafting asset purchases, including special due diligence and letter of intent issues, the form of consideration for the transaction, successor liability and creditor issues, major tax considerations, and special challenges in transferring specific types of assets. Part 1 of 2.
- Understanding the differences and risks and rewards of asset v. stock deals
- Special due diligence considerations when assets are transferred
- Techniques for transferring different types of assets – real estate, intangible property, licenses, contracts and more
- Representations and warranties when assets are transferred
- Forms of consideration, including cash, equity in the buyer, and asset exchanges
- Operating considerations depending on the form of withdrawal
Tyler J. Sewell, Morrison & Foerster, LLP, Denver