Mergers and Acquisitions For Dummies (81 page)

The company hasn't received written notice that the company is in violation of the requirements of any environmental law or the subject of any lawsuit arising from any environmental law.

The company hasn't transported, stored, or disposed of any hazardous material.

Seller has given a listing of all insurance policies to Buyer.

All insurance policies are legal, valid, binding, and enforceable.

Inventory is usable and saleable.

The company isn't in possession of any inventory it doesn't own.

Seller is responsible for paying any intermediaries she hires during the sale.

Seller has provided Buyer with a complete list of all accounts receivable.

The company doesn't have any prepayments or deposits from customers for products to be shipped or services to be performed after the closing date.

No officer or director of the company (while in the employ of the company) has filed bankruptcy or been convicted of a crime.

Seller has given Buyer a purchase order list (the commitments the company has made to buy from suppliers and vendors).

Seller doesn't know of any customer who is requesting to buy less than previous levels.

Seller has provided a list of customers and vendors to Buyer.

Buyer's reps and warranties

Although the Buyer provides far fewer reps and warranties than the Seller, he does still make a few promises: