Member Megan Preusker co-authored an article published by the American Health Law Association about distressed health care sales. The authors discuss seller and purchaser considerations in negotiating sale terms for court-approved stalking horse auctions. 

In the article, Megan and her co-authors write, “While many of the same considerations are at play in a distressed versus healthy transaction, in a distressed transaction there is the backdrop of a court approval process and the potential for a back-up bidder to be standing ready to close if the successful bidder does not. On the seller side, it is common to also see a so-called ‘drop dead date’ after which the seller may terminate the agreement and retain the deposit if the sale has been approved but the purchaser has failed to close.” 

Source

American Health Law Association