New Mexico Mergers & Acquisitions Questions & Answers

Q: If you acquire a company are you required to honor all of the current owner's existing vendor contracts?

2 Answers | Asked in Mergers & Acquisitions for New Mexico on
Answered on May 5, 2017
Gary William Boyle's answer
If you buy the stock of the company, the vendor contracts will continue to be contracts of the company you purchased and will be in force according to their terms. If you buy the assets of the company, the vendor contracts will remain with the seller and you would be free to deal with vendors as you please. Of course, there are many other considerations to take into account when deciding whether to purchase stock or assets.

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