The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
Once the seller has decided to sell a business, it will start the sale process by preparing an information memorandum (IM) containing detailed information about the target company's business. This may include drawing up a business plan in conjunction with management. The seller will then distribute the IM to potential purchasers.
Prior to making an offer any potential buyer is likely to:
carry out initial due diligence
try to line up debt finance for the acquisition, and
try to enlist the support of the existing management team, or line up a new team of their own
If the sale is to be by way of management buy-out (MBO), the management team will approach the seller with its proposal.
Sales of businesses are often conducted by way of auction, particularly in markets where there is significant competition among buyers. The seller will be looking not only for a good price but also for a bidder who can execute the transaction quickly and make an offer that is as unconditional as possible. Where a business is to be sold by way of auction, the process will be a bit different from the process set out below.
The key difference is that exclusivity will be awarded at a much later stage of the process. Prior to being awarded exclusivity, the buyer will need
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
LR1. Date of the lease[date]LR2. Title Number(s)LR2.1 Landlord's title number(s)[title numbers out of which this Lease is granted. Leave blank if not registered]LR2.2 Other title numbers[existing title number(s) against which entries of matters referred to in LR9, LR10, LR11 and LR13 are to be
Reserved judgmentsWhat is a reserved judgment?A court can reserve judgment by giving its decision at a later date in writing, after the trial or hearing (as opposed to an ex tempore judgment which is given by the judge orally straight after the hearing or trial). At the end of the hearing the judge
What is a statutory declaration of solvency, and what happens if a false declaration of solvency is madeStatutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For more information, see Practice Note: What is a
TCC—preparing for and attending a pre-trial review (PTR)Note:•this Practice Note gives specific guidance on matters proceeding in the Technology and Construction Court (TCC) under the provisions set out in CPR 60, CPR PD 60 and the TCC Guide. As these provisions are additional to the general
0330 161 1234