Due diligence and post-acquisition planning

Directors and private equity fund managers involved in acquisition activity face a legal and commercial minefield, particularly when the acquisition is of a business in insolvency or from an insolvent parent.  Forget warranties, because there are invariably none.  So getting it right first time is essential.

TUPE legislation, transfer of IT licences, ransom creditors, licences to occupy and getting into the mind of the vendor – the insolvency practitioner - are just a few examples of where these transactions can be very different from acquisitions of solvent companies.  We are expert at this because we are inevitably the selling party.  So we have turned our skills around to assist you.

Following the acquisition of all or part of a business, particularly when acquired from an administrator, you might simply want to ensure that calm returns to your new business as soon as possible.  In this scenario, steadying your ship and getting back to business as usual as soon as possible would be your critical ambition.

In a ‘carve out’ there may be a need for further radical change in an already nervous workforce.  You may be involved in managing a shared services agreement with the Administrator of the old business whilst you integrate your new acquisition into your existing business.  In this scenario we can help you plan the ongoing activity and ensure that detailed issues such as the integration of IT licencing and systems is managed effectively.

Engaging FRP Advisory to plan and manage this transitional process, typically over 100 days, can be the critical difference between preserving value in your investment and facing further turbulence.

Delivering confidence to your investors, private or institutional, that allows them to make their investment decisions with clarity and certainty comes from the experience that our people have of businesses in transition and rapid change.

Please feel free to contact us for a discussion or further references of work that we have undertaken.