Assynt Corporate Finance, a member of The Corporate Finance Network in Hertfordshire, has successfully advised the shareholders of an accountancy and tax practice on the sale of its assets to another firm.Andrew Watkin, Partner at Assynt Corporate Finance, was asked by his client to undertake a confidential search and approach exercise of potential buyers to see if there was any interest in their business, as part of their retirement plans. Using The Corporate Finance Network's 555 process, Andrew approached 54 local practices, who on paper, could be interested in acquiring the assets of his clients business.
14 parties expressed an interest which led to two meetings with serious buyers, resulting in concrete offers for the business. Andrew went beyond the sale process to summarise key themes as to why the parties which showed initial interest but didn't submit an offer, decided not to do so, resulting in some actionable intelligence for the business.
Andrew advised on all aspects of the deal and attended all meetings with potential buyers. He explained the nature of and the risks to the seller and negotiated the financial aspects of the transaction including multiple recurring fees, the clawback amount and period. The integration of the two businesses was vital to protect the interested of the seller and, on Andrew's insistence; the parties looked at this during negotiations such that the nature of the transaction did change from that originally anticipated.
Andrew drew up a detailed Heads of Agreement which helped during the drafting of the APA where the buyer's solicitor had excluded certain points in the APA despite these having been agreed by the parties.
The disposal was completed on 1st May 2018 with the sale of the tangible and intangible assets.