by John M. Pelkey, Garvey Schubert Barer
The parties to the sale of an unregulated business have the luxury of being able to close simultaneously with the execution of the purchase agreement. As a result, they do not need to worry that, between the execution of the agreement and the closing, the business might suffer a catastrophic decline in revenues or that an essential piece of equipment might fail. By contrast, the parties to a broadcast transaction must carefully craft their purchase agreement to address the possibility that the station that is the subject of the transaction might significantly lose value in the period between the execution of the agreement and the closing.
