QUESTION
Would it be wise to merger with a company that has ligation in process.
Asked on Nov 30th, 2017 on Business Law - Missouri
More details to this question:
A president of our company is considering a merger with another company, which has a lawsuit in place as we speak. If the merger take place before the other company settles their case, our company would be apart of that ligation, is that correct? Should we hold up on the merger until the other company legal situation is cleared?
1 ANSWER
There are many different types of mergers, and the transaction could be structured to ensure that the assets of your company are not exposed in the litigation. Alternatively you can structure the transaction so that the owners of the other business are required to indemnify the merged company for any losses from the lawsuit.
Answered on Nov 30th, 2017 at 1:18 PM