Mergers, Acquisitions and Disposals
Almost without , contemplating a disposal of a successful company may take many months to plan. Clear initial objectives tend to produce the most satisfying outcomes.
Many companies are family owned or controlled. Disposals may be to third parties; to a competitor or perhaps to existing management by way of a buyout. The resulting wealth can then be diversified into new investment opportunities.
Gowen & Stevens can introduce a potential seller to the full range of complementary professionals who may need to be involved, e.g. accountants/actuaries/surveyors/bankers or valuers to ensure the company is marketed in the best possible manner and with accurate detailed information. We will advise on the documentation to be prepared, the limitations to be placed on warranties requested by the buyer and those matters which you should disclose to your buyer.
When acquiring a company, the time spent on negotiating with the seller and the undertaking of the necessary due diligence will be crucial to enable you to formulate the price to be paid and how it is to be structured:
- An outright purchase?
- An earn out?
- Cash or shares; or a combination?
All these questions will need careful evaluation. Gowen & Stevens can advise on the drafting of a Non-Disclosure Agreement behind which negotiations may be commenced.
Merging a company with another will require extremely careful planning. Is a merger in the best interest of each party? Should other courses of action be considered, perhaps a joint venture?
Speak to us early on with your thoughts and plans to ensure you make the right opening move.