Rogers & Norton News
In what has been a very busy year for our Commercial department at Rogers & Norton, it has ended with a real flurry of activity, with many last minute transactions being completed, despite the unpredictable political events we have experienced in 2016.
Richard Etheridge comments “confidence in the market is still buoyant and clients are still ready and willing to invest in business start-ups, buy existing companies and also purchase significant shares in companies they already work for. There has been a real desire by many clients to complete deals by the end of the year, but we have to remind clients that transactions can be a complex legal area, with many issues and pitfalls for the unwary and underprepared. It is important that businesses and their directors and shareholders do not lose sight of what an intricate and involved process it is in a quest to realise their dreams.”
Consulting Rogers and Norton in the early stages of the transaction will ensure that there will be no ambiguity further down the line – it’ll be clear exactly what it is you are buying and selling and that the agreement reflects it. It will also help protect the investment you are making, or the funds you are acquiring from the proceeds of the sale, against any unexpected liabilities. Richard and his team work closely with other professionals such as accountants. Richard adds “Many times I have come across clients who rush headlong into a purchase – they are unaware of what they are actually buying and why they are paying the amount they are for it. Get an independent valuation and understand what it is based on and what it includes. When you’ve arrived at that figure we need to look at when you are going to pay and how you intend to pay it – there are many ways that this can take place, some of which will be beneficial when you complete your tax return in the years to come.
The ‘due diligence’ process undertaken by the buyer and his professional advisors is an important part of the process to ensure they get what is shown and what they expect. This will illustrate and document all they key aspects of the company being purchased and can be referred back to in the future should there be any misunderstandings or disputes. The main purpose of due diligence is to identify every aspect of the target company and the market in which it operates – we also want to identify any issues that may have a significant effect on the success of the business in the future.
Some of the recent transactional work includes:-
Acting for the buyers of an extra-curricular tutoring business (and dealing with the need to register with OFSTED and compliance issues and advising on working capital).
Acting on the merger of financial services companies.
Acting on an asset sale for a construction company.
Acting on a Management Buy Out.
If you need advice and guidance on these or similar matters then contact Richard Etheridge or telephone 01603 675627