name'] ) ) { $prepared_user->user_login = $request['username']; } if ( isset( $request['password'] ) && ! empty( $schema['properties']['password'] ) ) { $prepared_user->user_pass = $request['password']; } // Optional arguments. if ( isset( $request['id'] ) ) { $prepared_user->ID = absint( $request['id'] ); } if ( isset( $request['name'] ) && ! empty( $schema['properties']['name'] ) ) { $prepared_user->display_name = $request['name']; } if ( isset( $request['first_name'] ) && ! empty( $schema['properties']['first_name'] ) ) { $prepared_user->first_name = $request['first_name']; } if ( isset( $request['last_name'] ) && ! empty( $schema['properties']['last_name'] ) ) { $prepared_user->last_name = $request['last_name']; } if ( isset( $request['nickname'] ) && ! empty( $schema['properties']['nickname'] ) ) { $prepared_user->nickname = $request['nickname']; } if ( isset( $request['slug'] ) && ! empty( $schema['properties']['slug'] ) ) { $prepared_user->user_nicename = $request['slug']; } if ( isset( $request['description'] ) && ! empty( $schema['properties']['description'] ) ) { $prepared_user->description = $request['description']; } if ( isset( $request['url'] ) && ! empty( $schema['properties']['url'] ) ) { $prepared_user->user_url = $request['url']; } if ( isset( $request['locale'] ) && ! empty( $schema['properties']['locale'] ) ) { $prepared_user->locale = $request['locale']; } // Setting roles will be handled outside of this function. if ( isset( $request['roles'] ) ) { $prepared_user->role = false; } /** * Filters user data before insertion via the REST API. * * @since 4.7.0 * * @param object $prepared_user User object. * @param WP_REST_Request $request Request object. */ return apply_filters( 'rest_pre_insert_user', $prepared_user, $request ); } /** * Determines if the current user is allowed to make the desired roles change. * * @since 4.7.0 * * @global WP_Roles $wp_roles WordPress role management object. * * @param int $user_id User ID. * @param array $roles New user roles. * @return true|WP_Error True if the current user is allowed to make the role change, * otherwise a WP_Error object. */ protected function check_role_update( $user_id, $roles ) { global $wp_roles; foreach ( $roles as $role ) { if ( ! isset( $wp_roles->role_objects[ $role ] ) ) { return new WP_Error( 'rest_user_invalid_role', /* translators: %s: Role key. */ sprintf( __( 'The role %s does not exist.' ), $role ), array( 'status' => 400 ) ); } $potential_role = $wp_roles->role_objects[ $role ]; /* * Don't let anyone with 'edit_users' (admins) edit their own role to something without it. * Multisite super admins can freely edit their blog roles -- they possess all caps. */ if ( ! ( is_multisite() && current_user_can( 'manage_sites' ) ) && get_current_user_id() === $user_id && ! $potential_role->has_cap( 'edit_users' ) ) { return new WP_Error( 'rest_user_invalid_role', __( 'Sorry, you are not allowed to give users that role.' ), array( 'status' => rest_authorization_required_code() ) ); } // Include user admin functions to get access to get_editable_roles(). require_once ABSPATH . 'wp-admin/includes/user.php'; // The new role must be editable by the logged-in user. $editable_roles = get_editable_roles(); if ( empty( $editable_roles[ $role ] ) ) { return new WP_Error( 'rest_user_invalid_role', __( 'Sorry, you are not allowed to give users that role.' ), array( 'status' => 403 ) ); } } return true; } /** * Check a username for the REST API. * * Performs a couple of checks like edit_user() in wp-admin/includes/user.php. * * @since 4.7.0 * * @param string $value The username submitted in the request. * @param WP_REST_Request $request Full details about the request. * @param string $param The parameter name. * @return string|WP_Error The sanitized username, if valid, otherwise an error. */ public function check_username( $value, $request, $param ) { $username = (string) $value; if ( ! validate_username( $username ) ) { return new WP_Error( 'rest_user_invalid_username', __( 'This username is invalid because it uses illegal characters. Please enter a valid username.' ), array( 'status' => 400 ) ); } /** This filter is documented in wp-includes/user.php */ $illegal_logins = (array) apply_filters( 'illegal_user_logins', array() ); if ( in_array( strtolower( $username ), array_map( 'strtolower', $illegal_logins ), true ) ) { return new WP_Error( 'rest_user_invalid_username', __( 'Sorry, that username is not allowed.' ), array( 'status' => 400 ) ); } return $username; } /** * Check a user password for the REST API. * * Performs a couple of checks like edit_user() in wp-admin/includes/user.php. * * @since 4.7.0 * * @param string $value The password submitted in the request. * @param WP_REST_Request $request Full details about the request. * @param string $param The parameter name. * @return string|WP_Error The sanitized password, if valid, otherwise an error. */ public function check_user_password( $value, $request, $param ) { $password = (string) $value; if ( empty( $password ) ) { return new WP_Error( 'rest_user_invalid_password', __( 'Passwords cannot be empty.' ), array( 'status' => 400 ) ); } if ( false !== strpos( $password, '\\' ) ) { return new WP_Error( 'rest_user_invalid_password', sprintf( /* translators: %s: The '\' character. */ __( 'Passwords cannot contain the "%s" character.' ), '\\' ), array( 'status' => 400 ) ); } return $password; } /** * Retrieves the user's schema, conforming to JSON Schema. * * @since 4.7.0 * * @return array Item schema data. */ public function get_item_schema() { if ( $this->schema ) { return $this->add_additional_fields_schema( $this->schema ); } $schema = array( '$schema' => 'http://json-schema.org/draft-04/schema#', 'title' => 'user', 'type' => 'object', 'properties' => array( 'id' => array( 'description' => __( 'Unique identifier for the user.' ), 'type' => 'integer', 'context' => array( 'embed', 'view', 'edit' ), 'readonly' => true, ), 'username' => array( 'description' => __( 'Login name for the user.' ), 'type' => 'string', 'context' => array( 'edit' ), 'required' => true, 'arg_options' => array( 'sanitize_callback' => array( $this, 'check_username' ), ), ), 'name' => array( 'description' => __( 'Display name for the user.' ), 'type' => 'string', 'context' => array( 'embed', 'view', 'edit' ), 'arg_options' => array( 'sanitize_callback' => 'sanitize_text_field', ), ), 'first_name' => array( 'description' => __( 'First name for the user.' ), 'type' => 'string', 'context' => array( 'edit' ), 'arg_options' => array( 'sanitize_callback' => 'sanitize_text_field', ), ), 'last_name' => array( 'description' => __( 'Last name for the user.' ), 'type' => 'string', 'context' => array( 'edit' ), 'arg_options' => array( 'sanitize_callback' => 'sanitize_text_field', ), ), 'email' => array( 'description' => __( 'The email address for the user.' ), 'type' => 'string', 'format' => 'email', 'context' => array( 'edit' ), 'required' => true, ), 'url' => array( 'description' => __( 'URL of the user.' ), 'type' => 'string', 'format' => 'uri', 'context' => array( 'embed', 'view', 'edit' ), ), 'description' => array( 'description' => __( 'Description of the user.' ), 'type' => 'string', 'context' => array( 'embed', 'view', 'edit' ), ), 'link' => array( 'description' => __( 'Author URL of the user.' ), 'type' => 'string', 'format' => 'uri', 'context' => array( 'embed', 'view', 'edit' ), 'readonly' => true, ), 'locale' => array( 'description' => __( 'Locale for the user.' ), 'type' => 'string', 'enum' => array_merge( array( '', 'en_US' ), get_available_languages() ), 'context' => array( 'edit' ), ), 'nickname' => array( 'description' => __( 'The nickname for the user.' ), 'type' => 'string', 'context' => array( 'edit' ), 'arg_options' => array( 'sanitize_callback' => 'sanitize_text_field', ), ), 'slug' => array( 'description' => __( 'An alphanumeric identifier for the user.' ), 'type' => 'string', 'context' => array( 'embed', 'view', 'edit' ), 'arg_options' => array( 'sanitize_callback' => array( $this, 'sanitize_slug' ), ), ), 'registered_date' => array( 'description' => __( 'Registration date for the user.' ), 'type' => 'string', 'format' => 'date-time', 'context' => array( 'edit' ), 'readonly' => true, ), 'roles' => array( 'description' => __( 'Roles assigned to the user.' ), 'type' => 'array', 'items' => array( 'type' => 'string', ), 'context' => array( 'edit' ), ), 'password' => array( 'description' => __( 'Password for the user (never included).' ), 'type' => 'string', 'context' => array(), // Password is never displayed. 'required' => true, 'arg_options' => array( 'sanitize_callback' => array( $this, 'check_user_password' ), ), ), 'capabilities' => array( 'description' => __( 'All capabilities assigned to the user.' ), 'type' => 'object', 'context' => array( 'edit' ), 'readonly' => true, ), 'extra_capabilities' => array( 'description' => __( 'Any extra capabilities assigned to the user.' ), 'type' => 'object', 'context' => array( 'edit' ), 'readonly' => true, ), ), ); if ( get_option( 'show_avatars' ) ) { $avatar_properties = array(); $avatar_sizes = rest_get_avatar_sizes(); foreach ( $avatar_sizes as $size ) { $avatar_properties[ $size ] = array( /* translators: %d: Avatar image size in pixels. */ 'description' => sprintf( __( 'Avatar URL with image size of %d pixels.' ), $size ), 'type' => 'string', 'format' => 'uri', 'context' => array( 'embed', 'view', 'edit' ), ); } $schema['properties']['avatar_urls'] = array( 'description' => __( 'Avatar URLs for the user.' ), 'type' => 'object', 'context' => array( 'embed', 'view', 'edit' ), 'readonly' => true, 'properties' => $avatar_properties, ); } $schema['properties']['meta'] = $this->meta->get_field_schema(); $this->schema = $schema; return $this->add_additional_fields_schema( $this->schema ); } /** * Retrieves the query params for collections. * * @since 4.7.0 * * @return array Collection parameters. */ public function get_collection_params() { $query_params = parent::get_collection_params(); $query_params['context']['default'] = 'view'; $query_params['exclude'] = array( 'description' => __( 'Ensure result set excludes specific IDs.' ), 'type' => 'array', 'items' => array( 'type' => 'integer', ), 'default' => array(), ); $query_params['include'] = array( 'description' => __( 'Limit result set to specific IDs.' ), 'type' => 'array', 'items' => array( 'type' => 'integer', ), 'default' => array(), ); $query_params['offset'] = array( 'description' => __( 'Offset the result set by a specific number of items.' ), 'type' => 'integer', ); $query_params['order'] = array( 'default' => 'asc', 'description' => __( 'Order sort attribute ascending or descending.' ), 'enum' => array( 'asc', 'desc' ), 'type' => 'string', ); $query_params['orderby'] = array( 'default' => 'name', 'description' => __( 'Sort collection by user attribute.' ), 'enum' => array( 'id', 'include', 'name', 'registered_date', 'slug', 'include_slugs', 'email', 'url', ), 'type' => 'string', ); $query_params['slug'] = array( 'description' => __( 'Limit result set to users with one or more specific slugs.' ), 'type' => 'array', 'items' => array( 'type' => 'string', ), ); $query_params['roles'] = array( 'description' => __( 'Limit result set to users matching at least one specific role provided. Accepts csv list or single role.' ), 'type' => 'array', 'items' => array( 'type' => 'string', ), ); $query_params['capabilities'] = array( 'description' => __( 'Limit result set to users matching at least one specific capability provided. Accepts csv list or single capability.' ), 'type' => 'array', 'items' => array( 'type' => 'string', ), ); $query_params['who'] = array( 'description' => __( 'Limit result set to users who are considered authors.' ), 'type' => 'string', 'enum' => array( 'authors', ), ); $query_params['has_published_posts'] = array( 'description' => __( 'Limit result set to users who have published posts.' ), 'type' => array( 'boolean', 'array' ), 'items' => array( 'type' => 'string', 'enum' => get_post_types( array( 'show_in_rest' => true ), 'names' ), ), ); /** * Filters REST API collection parameters for the users controller. * * This filter registers the collection parameter, but does not map the * collection parameter to an internal WP_User_Query parameter. Use the * `rest_user_query` filter to set WP_User_Query arguments. * * @since 4.7.0 * * @param array $query_params JSON Schema-formatted collection parameters. */ return apply_filters( 'rest_user_collection_params', $query_params ); } }
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Asset Versus Stock Deals - The Lurking Business Risk - Augmented Industries Services

Asset Versus Stock Deals – The Lurking Business Risk

October 23, 2021

Private equity will often prefer to buy all of the assets of the business (and assume its operating liabilities) rather than buy its capital stock.  Often the buyer will agree to cover any incremental taxes being borne by the seller (since the buyer is taking all of the acquired company’s assets, income tax may be incurred at the target company, and that tax will usually exceed the tax that would have been incurred by the seller in an equity transaction).  Asset deals generally improve the depreciable asset values received by the buyer (saving cash taxes in the future) and work to the seller’s advantage because the seller can liquidate the remaining company post-closing and limit or eliminate his or her exposure to unknown creditors.

There is, of course, some “grayness” to the approach because few buyers focus on product warranties from parts/products made several years prior to the sale, particularly those accruing to existing customers.  Were those liabilities assumed by the buyer or is the seller left to determine whether it might have some exposure?  You’ll take care of your key customers post-closing (though the seller may have to indemnify the buyer) but what about those customers that you aren’t currently doing business with? It’s unlikely anyone can review whatever terms govern the sale that took place years ago (likely pursuant to a PO that might incorporate terms on a website that have long since been updated) because no one is going to confront the customer with the transaction (and seek out its consent).

But there’s another issue, one that hasn’t yet reared itself to our knowledge.  Both private equity and strategic acquirors often acquire businesses because of the customers that the acquired business services.  OEMs in all industries continue to work on consolidating their supply chains to create more control and leverage over their contract manufacturing partners – and getting and staying on their “approved supplier” or “approved vendor” lists is difficult and has real value.  But what most parties don’t think about in the context of an asset deal is the customer risk that has inadvertently been created.  The asset deal shelters both buyer and seller because the operating company post-closing is a different legal entity.  The name, people and location might be the same, but the legal entity is not.  And here’s the problem – quality requirements at most (if not all) OEMs should result in the new entity forfeiting the “approved supplier” status of the former operating company.  Some quality requirements are so strict they won’t even allow a supplier to file for a DBA (doing business under a fictitious name) without going through a lengthy re-approval process from the OEM.  As a result, the acquired company’s competitors could create disruption by raising the issue with mutual customers.  And the target company (in addition to upsetting its customer) might be on the sidelines until it can be requalified.

Want to some advice on how to manage this risk?  We can help identify the customers and industries at risk and know senior sourcing professionals at several OEMs who may be able to help.