I am doing legal due dil on a Seller and found a bunch of DUIs, and arrests for disorderly conduct and similar things. In fact, just earlier this year Seller spend 45 days in jail for these things.

We found the corporation was administratively dissolved and then reinstated this summer. This happens when the corporation fails to file its Annual Report. The lawyer said that this might be a good finding, since it means they settled whatever penalties they had with the State.

The deal is a stock sale, so obviously these are red flags. Would these alone be a deal breaker for most buyers? I'm very tempted to walk away, but a lot has been invested so far into the deal.