Legal Question in Business Law in California

The owner/President of Company A possesses technical knowledge on how to make a product. This product happens to be the primary product Company A sells. The owner decides to form a consulting company (Company B). Company B comes to an agreement with another company (Company C) to sell the technical knowledge to Company C so they can make the product themselves. A few years after this deal is finalized, Company D decides to acquire Company A. During the due diligence process, is Company A required to disclose that its owner/President (via Company B) has already sold the technical knowledge to make this product to another company (Company C)?

Asked on 4/20/22, 8:25 pm

1 Answer from Attorneys

I apologize, but your question is a little more than can or will be answered in this forum. This forum is for general information; you're seeking a very specific legal opinion, evaluation and validation based solely on your statement of facts. An attorney would risk creating an attorney-client relationship in responding to this question with the responsibilities that go with that relationship. You will need to consult with an attorney. I hope you understand.

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Answered on 4/27/22, 4:15 pm

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