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Posted By: leon

I am no business acquisition expert but do know that the way a company is bought has a lot to do with what the past liabilites will be. If a company buys the stock of another, instead of just the assets, then they are probably liable. I know when I bought some companies last year I only bought the assets, not the stock, so was not liable for the other company's liabilities. It might change with what state you're in too. So in answer to your question it's hard to say if they bought the liablities without knowing the way the deal was structured.....best regards