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If you decide that you don't need those customers and can afford to alienate them, that's your decision to make I don't know about American law, but herearound
by CaptainZapp 11y ago
If you decide that you don't need those customers and can afford to alienate them, that's your decision to make
I don't know about American law, but herearound, when you acquire a company you acquire the contracts, which this company has underwritten. You can't just tell your counterparties: "Tough shit and sorry mate! We apologiese for the inconvenience!" and just tear up valid, legal contracts at your discretion.
- ceejayoz 11y agoIn America, most contracts customers get with devices like this read along the lines of "we can eat your children and you're required to applaud while we do so".
- sib 11y agoIn many cases, what you read about as "acquisitions" are actually "asset sales," meaning that the seller and the acquirer have specifically agreed on what assets have been transferred (say, real estate, IP, brand names, machine tools, whatever), and what have not. Similarly for liabilities. There are, of course, laws relating to fraud, consumer protection, etc. It's only when you actually acquire the company (buy the outstanding shares) that basically "everything" transfers to the purchaser. And even there, they can agree on carveouts for specific liabilities or other things, such as existing customer support.