NJ: 973.376.0909 |

BMK Business Matters

Let The Seller Beware

Selling Business Assets

Caveat emptor may be a familiar warning, but caveat venditor should be your watchwords if your business is in talks to sell valuable assets.

A case decided in federal court in Camden, NJ[1] highlights why companies for sale must exercise extreme care in disclosing valuable confidential business information, trade secrets and other intellectual property assets when dealing with potential buyers.

J&J Snack Foods Corp. claimed that Ruiz Food Products, Inc., a competitor of one of its product lines, approached J&J about selling its Patio® brand of frozen foods. After the two companies entered into a confidentiality agreement and a letter of intent, J&J alleges it shared detailed proprietary and confidential information, including ingredient specifications, product formulas, financial data, customer information, and vendor lists. After the initial asset purchase agreement was reviewed and a revised draft suggested, the deal came to an abrupt halt. J&J claims that Ruiz simply informed it that the deal “would not move forward” – offering no “meaningful explanation.”Read More

Sticky
Jul 19, 2016
0

We look forward to speaking with you.

  • Locations

    Get Directions

    New Jersey
    180 River Road
    Summit, New Jersey 07901
    T: 973.376.0909
    F: 973.376.0903
  •  

    Get Directions

    New York
    17 State Street
    Suite 4000
    New York, NY 10004