richard phillips presenting at the iod on 11 october 2012 © copyright matthew arnold & baldwin...
TRANSCRIPT
![Page 1: Richard Phillips presenting at The IOD on 11 October 2012 © Copyright Matthew Arnold & Baldwin LLP, 2012. All rights reserved](https://reader036.vdocuments.net/reader036/viewer/2022070413/5697bfe11a28abf838cb3cd0/html5/thumbnails/1.jpg)
Richard Phillips presenting at The IOD on 11 October 2012
© Copyright Matthew Arnold & Baldwin LLP, 2012. All rights reserved.
![Page 2: Richard Phillips presenting at The IOD on 11 October 2012 © Copyright Matthew Arnold & Baldwin LLP, 2012. All rights reserved](https://reader036.vdocuments.net/reader036/viewer/2022070413/5697bfe11a28abf838cb3cd0/html5/thumbnails/2.jpg)
Buying & Selling Private Companies
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, 2012. All rights reserved. be relied on in any situation.
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Overview
1. Preparation
2. Finalising the deal
3. What the process involves
4. What each party requires and why
5. Spanners in the works
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Preparation
• Start now• Ducks in a row…
• Worthwhile to the Seller
• Smoother deal for the Buyer
• Funding – banks/private equity/capital markets
• What type of deal – selling/buying shares or selling/buying assets?• The difference
• Liability
• Contracts
• Employees
• What will your lawyer need to do differently?
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Finalising the deal
• Heads of Terms
• Confidentiality
• Exclusivity
• Costs protection
• Realistic timeframe
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What the Process involves
• 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
• Retention
• Completion accounts
• Restrictive covenants
• Deferred consideration – and earn out?
• Seller – security and defence• As much risk free money as possible?
• Greater potential sum but more risk?
• Security for deferred consideration
• Disclosures and limitations on warranties
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Spanners in the works (1)
• Gulf in risk allocation
• Awkward other party
• Awkward other lawyer
• 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
• From left field…
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Summary
• Take advice early
• Understand your own limits on risk and plan tactics accordingly
• Understand the other party
• 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 1AE21 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 11 October 2012. 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.