Introduction
All too frequently, the combination of business entities is completed without the proper examination of the feasibility of combining or eliminating overlapping channels of distribution. For example, if a supplier acquires the assets of a product line from another supplier, must the acquiror make this new product line available to its distributors, sales representatives, or franchisees? Suppose a supplier acquires the assets or buys the stock of another supplier. Does the acquiror have the obligation to continue dealing with distributors of the selling company? Are the distributors of the acquiring company obligated to sell the products of the company that is purchased? There are all questions that must be considered. Proper steps of due diligence must be taken before the purchase and sale are completed. This article will discuss the steps a company needs to take, both as buyer and seller, before the transaction goes forward. In addition, this article will discuss issues
