15 Mar 2018
Following on from Alan Kelly‘s focus on due diligence and documentation phases, corporate finance expert Gary Baines advises on factors to consider as completion approaches.
Gary Baines
Job Title
Last time, Alan Kelly looked at the due diligence and documenting stages of the buying/selling process with veterinary practices. This next article looks at practical steps to take in the run-up to completion (pre-closing) and completion itself.
The pre-closing stage will overlap with the latter period of the documentation stage, during which detailed legal and financial negotiations will be ongoing, with the outcomes being discussed, negotiated and documented by your advisors.
At this point – generally about three weeks to one month prior to the target completion date – you should have a good idea when completion will take place.
So, what should you be thinking about at the pre-closing stage?
In short, it’s never too early to start planning for completion (you will have likely agreed a target date at the outset), and good advisors should guide you through the practical steps as, during the pre-closing period, the deal will need to be managed well to ensure all the plates are spinning – and none are allowed to drop.
Often, that management is undertaken by a combination of lawyers and accountants. We would always look to ensure an updated deal delivery schedule is maintained, and known and understood by all parties.
Once a deal has momentum, it can be damaging for it to be derailed by an item or process that has been overlooked.
Completion will either take place:
Following signing, the advisors will then arrange for funds to be transferred as agreed and any post-completion actions to be taken (such as filings with HMRC, the Land Registry and Companies House).
As a final thought, some top tips to keep in mind are:
