Beware!

rgatijnet1 wrote:

Ductape wrote:
Nonsense. Sale of a business includes all assets and liabilities unless specifically excluded.

Exactly! Buying a business involved doing ALL of your due-diligence to identify all aspects of the existing operating business.
Now if you were going to buy a building and tear it down and start a new business, that is different.
In this case, it appears that the new owners wanted to do a seamless purchase of an existing RV park and either they failed to do a complete examination of the existing business, and the way it was run, or they just didn't care.
Either way, the new owners could have handled things differently to maintain their loyal customer base, which is what they were probably hoping to do when they bought the business.
They are starting off with a "fail" in their new endeavor.

Actually, almost all business sales are "asset sales". The liabilities remain with the selling entity (most are paid at closing to eliminate any liens, UCC filings etc.). Only the assets transfer. In any sale I have been involved with, the name of the business in an asset, it is not the actual business. Like I previously posted, in every park I have purchased there have been some claims like "the previous owner said I could have my choice of sites forever, and get a 50 percent discount off the best rate because I am a great customer". Such a "liability" would never be found in any due diligence, and the new owner would not be required to honor any such claim.