Honolulu, HI asked in Mergers & Acquisitions for Hawaii

Q: If you acquire a company do you have any obligation to retain their independent contractors?

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1 Lawyer Answer
Jonathan R. Roth
Jonathan R. Roth

A: If you purchase the stock of a company you are obligated to honor existing contracts. If you buy the assets of the company you can purchase the assets and limit the obligations and contracts you accept in the purchase. If the independent contractors have contracts, you have to honor those contracts. If they have termination provisions, then you or the current owner of the company can terminate them. I would have the independent contractors terminated and a release obtained by the Company prior to closing on the acquisition or I would buy all the assets and limit what obligations I would undertake.

Jason Braswell agrees with this answer

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