Supply chains can be fragile at the best of times – even more so when a supplier is in financial difficulty. A client recently instructed Corporate Partner David Davies when he wanted to ensure services being provided to his clients, and the line of supply, were secure by acquiring the supplier’s business.
David discussed the alternative methods of acquiring the business with his client and determined that an asset sale was most appropriate. As the deal was not contentious, it was important that balanced documentation was produced quickly. David and the team also helped the sellers (who did not engage solicitors) to understand the effect of the documentation.
David also discussed with the client’s US-based parent company’s in-house counsel to explain the effects of the draft documentation under English law.
David’s guidance throughout what could have been a fraught process meant that the client secured the line of supply to services for its clients and expanded its primary offering in the market.
Following the deal, David said: “This was an unusual deal as there was very little that was contentious between the parties. Therefore, speed and commerciality were of the essence.”