Analyzing Successor Employer Labor Obligations in Asset Purchase Transactions

Post By: Andrew T. Frost

Buyers often purchase the assets of a business rather than purchase the stock of the business in order to avoid the seller’s liabilities. Some buyers believe this shields them from any obligation to recognize the union that represented the seller’s employees. This is not necessarily the case, and such buyers may be unwittingly acquiring unwanted labor obligations, including union recognition and collective bargaining. Potential buyers should carefully analyze the facts and circumstances of an asset purchase transaction to determine if the deal will trigger labor obligations for the buyer. The following are scenarios that will cause a buyer to acquire labor obligations as part of an asset purchase transaction. Continue reading


The comments and opinions expressed in this blog are intended for informational purposes only and do not constitute legal advice. Reading or using the information in this blog does not create the existence of an attorney-client privilege. Due to the changing nature of the law, the blog posts may contain dated material. For an update on the current law and the application of the law to your particular facts and circumstances, consult a legal advisor. The information contained herein is not a substitute for obtaining legal advice from a qualified attorney licensed in your state.