How Can the Buyer Minimize Post-closing Problems?
The three most important things a buyer can to do to minimize the risk of post-closing problems are: (i) adequate due diligence before becoming obligated to purchase, (ii) document the transaction with properly drafted legal documents, and (iii) obtain personal guaranties of the selling entity’s obligations under the purchase agreement unless you are certain that the selling entity will always have the assets to satisfy any breaches of the purchase agreement and related documents.
