Mergers & Acquisitions
Expert Business Law Advice
Whether you are looking to buy a business, or planning to sell your own, our business solicitors can advise on and deal with all the different methods of doing this. Alternatively you may be looking to merge with a competitor to strengthen your respective positions in the marketplace.
If you are an owner or manager you should start grooming your business for sale some years in advance, to make your business a more attractive and marketable proposition, and also to ensure you are prepared and ready for the Due Diligence enquiries of any potential buyer.
You should also consider with your accountants the most tax effective way to realise the proceeds of your sale, and we can help to implement any necessary legal re-structuring.
You should rely on your professional advisers to assist you with this process. We deal with these transactions regularly, whereas for most sellers it will be a one-off experience. Without proper preparation this can be a very stressful experience, diverting a lot of your time from the successful management of the business, which can then set your business back if the buyer decides not to proceed.
How do you find a buyer?
Consider your competitors Consider the internal management team - a Management Buy-Out (MBO). Consider external management teams - a Management Buy-In (MBI). Consider third party agents who specialise in finding buyers in your sector. Consider advertising in specialist press.
If your business is financially secure you may wish to expand in your current marketplace, either by acquiring a competitor, or diversifying into other complementary areas.
When you buy a business it does not come with any statutory warranties – you can’t return it if you discover after the purchase that it is “broken”, or not quite what you expected. You therefore have to carry out thorough investigations with your accountants and lawyers before signing on the dotted line (“Due Diligence”), and then include appropriate warranties in your purchase agreement to cover the elements you can’t fully investigate.
Another way to expand your business, and improve your position in your market sector, is to find a suitable merger partner. As with a purchase, Due Diligence is again very important.
You will also need to decide the most appropriate legal entity for the merged business, how best to deal with the assets, and set out how the business will be run by the newly combined management teams.
For an initial chat about any of the above areas, please contact our Business Team