richard phillips presenting at the iod conference on 10 november 2010 © copyright matthew arnold...
TRANSCRIPT
![Page 1: Richard Phillips presenting at The IoD Conference on 10 November 2010 © Copyright Matthew Arnold & Baldwin LLP, 2010. All rights reserved](https://reader035.vdocuments.mx/reader035/viewer/2022062713/56649ce45503460f949b0e5f/html5/thumbnails/1.jpg)
Richard Phillips presenting at The IoD Conference on 10 November 2010
© Copyright Matthew Arnold & Baldwin LLP, 2010. All rights reserved.
![Page 2: Richard Phillips presenting at The IoD Conference on 10 November 2010 © Copyright Matthew Arnold & Baldwin LLP, 2010. All rights reserved](https://reader035.vdocuments.mx/reader035/viewer/2022062713/56649ce45503460f949b0e5f/html5/thumbnails/2.jpg)
Buying and Selling Private Companies
Legal pitfalls and requirements
Richard Phillips
Partner, Corporate Team
Materials are for generic presentation purposes only and do not constitute legal advice which may © Copyright Matthew Arnold & Baldwin LLP, 2010. All rights reserved. be relied on in any situation.
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Overview
1. Preparing for potential buyers
2. Finalising the deal
3. The nature of the process
4. What each party requires and why
5. Spanners in the works
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Preparing for Potential Buyers• Start now
• Tidy up your business• Micro• Macro
• Appoint the right advisors
• Barriers to sale
• Price factors
• Know what you want to achieve• Share sale• Asset sale
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Preparing for Potential Buyers Share sale/Asset sale
• Tax driven
• Liability
• Contracts
• Employees – when does TUPE apply and what is it?
• The job for your lawyer
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Finalising the deal
• Heads of Terms
• Confidentiality
• Exclusivity
• Costs protection
• Realistic timeframe
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The nature of the Process• Due diligence and information gathering
• Documentation:
• To reflect commercial deal• To allocate risk between parties
• Negotiation/meetings
• Finance aspects
• Dealing with employees• TUPE• Due diligence
• Final documentation will be the deal – not things said/done before
• Time commitments
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What each party requires and why
• Buyer – protections
• Warranties
• Indemnities
• Restrictive covenants
• Seller
• As much risk free money as possible?
• Greater potential sum but more risk?
• Security for deferred consideration
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Spanners in the works (1)
• Gulf in risk allocation
• Awkward other party
• Awkward other solicitor
• Relative size/sophistication of Buyer & Seller
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Spanners in the works (2)
• Buyer is from another jurisdiction
• Third party difficulties
• Landlord
• Financiers
• Change of control
• Your Advisors
• Expect the unexpected
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Summary
• Start now
• Take advice early
• Keep focussed on final objectives
• Be pragmatic
• Time commitments
• Anticipate problems
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Contact
Richard Phillips Partner, Corporate Team E: [email protected]: 020 7842 3335
Matthew Arnold & Baldwin LLP - Solicitors85 Fleet Street, London, EC4Y 1AE401 Grafton Gate, Milton Keynes MK9 1AQ21 Station Road, Watford WD17 1HT
E: [email protected]: www.mablaw.com
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These slides have been produced only for the purposes of illustrating a talk given by Richard Phillips on 10 November 2010. They are not intended to be relied upon by any party and cannot constitute advice. Matthew Arnold & Baldwin LLP cannot be responsible in any way for any material contained herein.