Assynt Corporate Finance, a member of The Corporate Finance Network in Hertfordshire, has advised the shareholder of a pest control business on its company sale.
Andrew Watkin, a business adviser at Assynt Corporate Finance, was asked by the Director to undertake a lead role in disposing of the shares in a pest control company where the Director had identified a possible purchaser whom he knew.
This party eventually decided he did not have an appetite for the purchase. Fortunately, another buyer came along instead who had received rumours the business was for sale.
It was a genuine retirement sale since the Director wanted to pursue another career.
An information memorandum was prepared and was presented to the Director who approved its distribution to the interested party.
An offer was made and then Andrew negotiated the terms of the transaction such that the seller was put into a position whereby there was minimum risk attaching to the realisation of the final payment. After a great deal of thought and assessing the amount the seller would receive after tax and costs, the deal was completed as an asset sale rather than a share sale to simplify matters including due diligence and the deal structure.
The integration of the two businesses was vital to protect the interests of the seller and, on Andrew’s insistence; the parties looked at this during negotiations such that the nature of the integration of the two businesses was included in the Heads of Agreement without further changes to the Asset Purchase Agreement and Assignment of Goodwill.
The disposal was completed on 24th September 2019 with the sale of the stock and intangible assets.