Avoiding Corporate Successor Liability in Asset Purchases
Partner and chair of Herrick's Corporate Department, Morris DeFeo, spoke on a panel at the Strafford Live Webinar titled "Avoiding Corporate Successor Liability in Asset Purchases." The panel discussed the circumstances in which successor liability claims may arise and describe how due diligence, contractual provisions in the asset purchase agreements and reps and warranties insurance can be effective techniques to mitigate risk exposure.
Panelists reviewed these and other high priority issues:
- The circumstances under which asset buyers may be held liable as successors for claims made against prior owners.
- Considerations for counsel when assessing whether to advise a client to proceed with an asset purchase instead of a stock acquisition or merger transaction.
- Best practices for deal counsel to mitigate the risk of successor liability when negotiating an asset purchase agreement.
The presentation was followed by a live question and answer session with participants.