Looking for a solicitor to help buy or sell a business?
Hello I’m Steven Mather, a Leicester solicitor who specialises in buying and selling businesses. So if you’re looking to sell your business or buy a business and need a top UK business lawyer to help guide you through the legals, then I’d be delighted to get to know a little more about you and your business. Do contact me.
Buying or selling a business, whether in Leicester or wider afield, is a big thing for many of my clients. If they’re sellers, they will have worked hard for many years, built up a business and they know their industry inside out. But they’ve never sold a business before. You’re a smart cookie, but need some help with the legal side of things. I can help. I understand that you need more than just excellent legal support; you need sound business advice as well, and I’ll provide that.
Acquiring a business involves intricate legal processes, due diligence, and negotiations. It's essential to have a knowledgeable and experienced business solicitor by your side to ensure a smooth and successful acquisition.
Or if you’re selling your business, you need to ensure that your solicitor is experienced in business sales to protect your interests and ensure you get paid.
The importance of using a hiring a solicitor for your business acquisition or business sale.
Acquiring a business is a significant milestone that can lead to substantial growth and opportunities. However, it also entails navigating a complex web of legalities that can be daunting for even the most seasoned entrepreneurs. This is where the expertise of a business solicitor like Steven Mather becomes invaluable. Hiring a qualified and experienced solicitor can mean the difference between a seamless acquisition process and a legal quagmire that could jeopardise the entire deal. A great M&A solicitor will have specialised knowledge which will help you avoid pitfalls that may arise during negotiations and due diligence, ensuring that your interests are best protected.
A business solicitor is not just an advisor; they are your advocate in the acquisition process or sale of your business. Their role is to ensure that all legal requirements are met and that the transaction adheres to current laws and regulations. This includes drafting and reviewing contracts, conducting thorough due diligence on the target company (or if you are selling, advising you on the due diligence questions from the buyer), and advising on potential risks associated with the sale or purchase. By having a skilled solicitor by your side, you can approach the acquisition with confidence, knowing that you have a professional who understands the intricacies of business law and can navigate them effectively.
Moreover, the importance of hiring a business solicitor extends beyond the acquisition process itself. A solicitor can provide ongoing legal support and advice post-acquisition. This might include integrating the new business into your existing operations, addressing any legal issues that arise, and ensuring compliance with regulatory requirements. Therefore, investing in a reputable business solicitor is not merely a step in the acquisition process; it is a strategic move that can safeguard your investment and contribute to the long-term success of your business.
Buying or selling a business in the UK will usually involve the following stages.
- You've found the buyer/seller
- You've agreed in principle what the deal is (sometimes called Heads of Terms)
- You now want to make sure that what your buying or selling is exactly what you agreed, and that there are no nasty surprises once money changes hands (Due Diligence).
- Contract negotiations - ususally a share purchase agreement or asset purchase agreement, see below.
- Advice on warranties
- Actual transfer of share ownership or assets/contracts etc, aka completion.
The good news is that Steven Mather specialises in business sales and purchases, usually deals worth between £250,000 and £10m. Steven's ideal client is not a mega-corporation, but a business owner or director who would really value and appreciate excellent legal advice, great service, personality and fixed fees. Is that you?
In the last few years, I’ve helped buy or sell:
- A £1m ecommerce trade parts company
- A £90,000 ecommerce company
- A £1m property company
- A £1m recruitment company
- A £1.6m debt collection business
- A £450k facilities management company
- A £150k asset sale for a legal tech business
- A £250k insurance business sale
- A £1.2m security company
- A £1m+ sale of a B2B landscape management company
- A £95k sale of a Gym Franchise
- A £2m+ sale following a divorce for a civil engineering company
- A £4.5m MBO of a lift company
- A £250k GreenThumbs franchise
- A £1.2m sale of a car repair company
- A £300k reorganisation and sale of an insurance brokerage
- A £1m Design company
- A £100k purchase of a MOT garage
- A £30k accountancy client book
- A £50k lettings agency client bank
- A £100k toy company
- A £250k Financial Services business
- A £160,000 franchised business.
- A £4m medical services company
- A £7m plant hire business
- A £3m lighting business
- A £260,000 gardening franchise
- £1.1 million sheet metal business
- A £41,000 escape room business
- A £800,000 agricultural business
- A £900,000 alarm business
- A £250,000 financial services business
- A £100,000 accountancy business
- A £1.2m instrumentation business
- A £1.4m haulage business
- Plus others
We help buy and sell businesses in Leicester and the East Midlands (although we do work nationwide throughout the UK). What you get with Steven is straight-talking, effective, excellent, professional advice. That level of service isn't cheap, but if you want a great job doing and want to have direct contact with Steven rather than be passed down to a trainee, then we will get on.
If you’re buying an existing franchise (a franchise resale) see our dedicated page here.
Understanding the role of a business solicitor in acquisitions
The role of a business solicitor in acquisitions is multifaceted and crucial for the success of the transaction. At the outset, they help you understand the legal framework surrounding the acquisition, which includes compliance with corporate laws, tax implications, and employment laws. A competent solicitor will help you conduct thorough due diligence, scrutinizing the target business’s contracts and legal obligations to identify any red flags that could pose risks after the acquisition. This process is vital in ensuring that you are fully informed about what you are purchasing and that there are no hidden liabilities.
And if you’re selling, your corporate lawyer should assist you in the preparation and answering of due diligence questionnaires, reviewing documents in the data room and ensuring that you are disclosing all issues to the buyer in the most appropriate way.
Business solicitors also play a pivotal role during negotiations. They draft, review, and negotiate contracts to ensure that your interests are best represented. This will include the purchase agreements (see SPA v APA), confidentiality agreements, and any other legal documents required for the transaction. A skilled solicitor will be adept at identifying potential negotiation points and advocating for terms that favour your business, thereby maximising the value of the acquisition or sale. Your chosen lawyer’s experience in dealing with various negotiation scenarios should equip them with the tools needed to navigate challenging discussions effectively.
Furthermore, solicitors act as a bridge between you and other stakeholders, such as accountants, financial advisors, and regulatory bodies. They facilitate communication and collaboration among all parties involved, ensuring that everyone is on the same page and that the process proceeds smoothly. Their understanding of the legal landscape allows them to address any regulatory concerns that may arise, ultimately helping to expedite the acquisition process. The expertise of a business solicitor is thus indispensable at every stage, from initial planning through to the completion of the acquisition.
In short, if you’re looking for a solicitor who can help you with your business sale or purchase, then I can help!
Finding the right business solicitor for your business sale or business purchase
When it comes to hiring a business solicitor for acquisitions or business sales, several key factors should be taken into consideration to ensure you find the right fit for your needs. Firstly, you should evaluate the lawyer’s specialisation and experience in business acquisitions specifically. Not all solicitors are created equal! Some may focus on commercial law or family law, while others have a wealth of experience in mergers and acquisitions. Look for a solicitor who has a proven track record of handling similar transactions, as they will be familiar with the common challenges and nuances of the process. Do not just use the person who did your Will or Conveyancing a few years ago!
Secondly, consider the solicitor's reputation and client reviews. A solicitor with a strong reputation in the field is likely to have a solid network of contacts and relationships within the industry. I know I’ve been recommended by several people many times. Online reviews, testimonials, and referrals from colleagues can provide insights into a business solicitor’s professionalism, reliability, and effectiveness.
Lastly, assess the compatibility of the solicitor with your business and personal style. The acquisition or sale process can be lengthy and complex, requiring a strong working relationship based on trust and open communication. One of my priorities is to build relationships and enjoy the transaction, so with me you’ll get a little bit of humour as well as professionalism - we’re human after all.
That said, if I were looking for a corporate solicitor to help with a business purchase or sale, then I would suggest having initial chats with potential solicitors to gauge their approach, responsiveness, and willingness to understand your business objectives. A solicitor who takes the time to understand your goals and concerns is more likely to provide tailored advice that aligns with your vision for the acquisition or sale - rather than one who is focused purely on how much fees they will bill!
Steven works with fixed fees, and for each job a bespoke proposal is given.
We typically start at between 1-2% of the overall deal value in calculating a baseline for fees. However, sometimes that doesn’t quite work, particularly on deals below £250,000 - so we have a minimum fee of £3,500 plus vat for the smaller deals.
As a guide, if you’re selling for £1m, your fees are likely to be £15,000-£20,000 plus VAT. If you’re selling for £5m, expect more like £50,000 plus VAT.
Send me the details and I will tell you how I can help and what it will cost. Get in touch today.
Incidentally, we rarely price match other solicitors - simply because the lower priced ones don’t provide the same level of service (or any!). However, we will usually be cheaper than ‘proper’ commercial firms (eg those with glass fronted offices, ones in Legal 500, ones that have a ‘coffee menu’… you know the ones). Here’s some tips on ‘shopping around’ for business solicitors.
Tips for negotiating fees and terms with a business solicitor
Negotiating fees and terms with a business solicitor requires careful consideration and clear communication. Start by understanding the typical fee structures used in legal services. Many solicitors charge hourly rates - I would urge you to stay away from solicitors who cannot give you at the very least a capped fee. Much better, I think, to agree a fixed fee with a solicitor - it’s the only way I work. You get absolute certainty on how much you’ll pay with me.
If you’re shopping around though, familiarise yourself with the market rates for solicitors specialising in business acquisitions or sales to establish a reasonable expectation of costs. This knowledge will empower you during negotiations and help you assess whether the proposed fees are justified based on the solicitor’s experience and expertise.
When discussing fees, I think it is good to be upfront about your budget and the parameters within which you want to work - but be reasonable. A reputable solicitor will appreciate your transparency and may be willing to negotiate terms to accommodate your financial constraints - being reasonable means if you’ve agreed a £75,000 fee to your business broker but only want to pay £8,000 to your lawyer then you’ll need to readjust your budget expectations. I think your solicitor should be getting about the same as your business broker is, particularly given how much work they will be doing on the legal side of the transaction.
Additionally, you may want to enquire about any additional costs that may arise during the acquisition process, such as disbursements or other administrative expenses. Understanding the full scope of potential costs will help you avoid surprises later on and ensure that you can make informed financial decisions.
Lastly, ensure that you clarify the terms of engagement and what services will be included for the quoted fees - when are they payable? Our fees are generally payable in 3 equal monthly instalments. Discuss the level of involvement you can expect from the solicitor throughout the acquisition process and whether they will be your primary point of contact. Confirm how often you will receive updates and what communication methods will be used. By establishing clear expectations and terms, you can foster a collaborative relationship with your solicitor that is built on mutual understanding and respect.
The benefits of working with a business solicitor during the acquisition process
Working with a business solicitor during the acquisition process or sale process offers numerous benefits that can significantly enhance the likelihood of a successful transaction. One of the primary advantages is their ability to navigate complex legal agreements. Business acquisitions often involve multiple regulations, compliance issues, and potential liabilities. A skilled solicitor has the expertise to ensure that all legal requirements are met, thereby minimising the risk of complications that could derail the acquisition or lead to costly legal disputes in the future.
Additionally, a business solicitor provides valuable guidance during negotiations. Their experience allows them to identify key negotiation points and advocate effectively on your behalf. This can result in more favorable terms, whether it concerns the purchase price, warranties, or post-acquisition obligations. A solicitor’s negotiation skills can be instrumental in achieving a deal that aligns with your business objectives, ultimately enhancing the value of the acquisition.
Furthermore, having a business solicitor by your side provides peace of mind throughout the acquisition process. The legal landscape can be overwhelming, especially for those who are not familiar with the intricacies of corporate law. Knowing that you have a knowledgeable professional managing the legal aspects of the transaction allows you to focus on other critical areas of the acquisition, such as integration planning and strategy development. Ultimately, the support and expertise of a business solicitor can streamline the acquisition process, enabling you to achieve a successful outcome with confidence.
Investing in a reputable business solicitor for your acquisition or business sale is not just a prudent decision; it is a strategic move that can significantly influence the success of your transaction. The complexities of the acquisition process demand a professional who can navigate legal intricacies, conduct thorough due diligence, and advocate for your interests during negotiations. A knowledgeable solicitor like Steven brings a wealth of experience and expertise that can help you avoid pitfalls and ensure compliance with all legal requirements.
Moreover, the right solicitor provides ongoing support that extends beyond the acquisition itself. They can assist with post-acquisition integration, compliance, and addressing any unforeseen legal challenges that may arise. This long-term partnership can prove invaluable as you work to maximize the value of your new acquisition and ensure its successful integration into your existing operations.
Whether you are buying or selling a business, doing as a share sale or an asset purchase, or you just don’t know - get in touch.
Steven’s typical client is probably like you - never sold a business before - and so we’ll help you every step of the way.
Send me the details and I will tell you how I can help and what it will cost. Get in touch today.
