OUR PEOPLE

Do I need a shareholders’ agreement?
A shareholders’ agreement is useful for regulating the relationship between a company and its shareholders. It can protect shareholders by preventing a shareholder from transferring his shares to a third party not known to the other shareholders. It can also provide for restrictions on the decision-making process of majority shareholders, if necessary.

Is it necessary to do legal due diligence on a transaction as I want to save costs?
It is possible to undertake minimal due diligence and rely on contractual warranties, but this is usually a short-sighted approach. Warranty claims may be difficult to prove and are likely to have limitations in application. It is far better for the buyer to identify and rectify any issues pre-completion. If the acquisition is funded through third party finance, a finance provider will expect the buyer to carry out a due diligence review.

How long will it take to buy/sell a company or business?
This will depend on the complexity of the transaction, whether third party approvals are necessary and whether any major issues are identified during the due diligence process which need to be rectified pre-completion.