Posted on 1.4.16
Christian Mancier, Corporate Lawyer at Gorvins Solicitors, spoke to North West Business Insider Magazine recently about what to look out for during a corporate acquisition deal. With deals sometimes struggling to get over the final completion line, the article delves a little deeper to discuss the ‘devil in the detail’.
You often read about the headline figures of a deal and the happy quotes that come after hands have been shaken, but there is a lot more to a deal than that. Due diligence needs to be directed from the buyer’s side to make sure there are no nasty surprises post-completion but it also needs to be looked at from the seller’s point of view as any documentation that isn’t present, may be a big turn-off for a potential buyer.
Christian, who acts predominantly on the seller side, said: “You must be able to evidence that you have contracts properly documented and stored well before you are faced with the due diligence for real on the part of the buyer.”
He continued, “Fill holes in your information, otherwise the buyer has a ready-made excuse to chip at the price or back out. The use of electronic data allows you to place all your information online at the outset and allow people to access it when you’re happy.”
The effort involved in getting your house in order won’t be in vain even if the deal falls through. Christian said, “It’s always worth getting your business in order, and if issues arise at the 11th hour it is often an indication that the buyer didn’t want to do the deal in the first place.”
The full article is available to read in the April 2016 edition of North West Business Insider.