Calfee Connections

In addition to identifying the impact of intercompany transactions and avoidable transfers that may arise in the FTX case, crypto-related bankruptcies typically present unique challenges to creditors and customers. 

In an M&A market that remains exceedingly frothy, many would-be buyers in the middle market are being forced to acquire the equity of a target company (rather than its assets) in order for their bids to be competitive. 

When the purchaser and the seller of a business are not able to negotiate an agreed-upon price to be paid at closing, one option is to incorporate an earnout provision into the transaction document.

Being a business owner always carries a certain level of risk. However, the rewards of ownership can be great as well. Whether you own one company or a portfolio of enterprises, you know that leveraging your assets and minimizing your liabilities is key.