Under French law, the divestiture of an unprofitable business can create specific legal risks resulting from the status of the sold business. International companies should anticipate a number of issues when selling a French loss-making subsidiary, including, but not limited to, issues surrounding the sale price, the risk of post-closing liabilities under bankruptcy proceedings and the risk of post-closing liabilities relating to employee claims.
Sale Price
France, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, McDermott Will & Emery, Consideration, Liability (financial accounting)