By
Lisa A. Lori
and Esq.
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(C) Stock Purchase. In a stock purchase, the company's liabilities stay with the company for whose stock is being transferred.
Accordingly, when agreeing on a deal structure, it is imperative that the parties be fully informed of and disclose all existing and potential liabilities of the seller/target. Undisclosed liabilities are almost certain to result in litigation against seller/target (or even principals of those companies) by the seller/acquirer.
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Lisa A. Lori
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