founding dates in a business acquisition: So I operate a MA LLC, acquiring a RI C Corp in the same industry. However, the RI C Corp is significantly older than the acquiring LLC, which will fold the RI C-corp in. The question is, does the acquiring LLC also effectively acquire the C-corps "history?" the RI C-corp leverages its age in marketing; "since 1988, RI C-Corp has been ______". The MA LLC doesn't have a comprable history, but we don't want to lose that avenue if at all avoidable.
would it be considered fraudulent/deceptive for the acquiring LLC, operating under a different name, to claim the acquisition's history operations? As in, instead of "since 2012, MA LLC has_____," using "since 1988, MA LLC has___"? what sort of laws/penalties would we be running up against?
1 Answer from Attorneys
Legally, after a merger the two entities are combined, so there is no false representation in claiming the longevity of the elder entity. You might note that Caterpillar is claiming legacy involvement in the Panama Canal project based upon its acquisition of the company that actually did the original project.
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