We helped the shareholders of a company which operates a pharmacy in Watford, with the disposal of the business and company by way of a share sale.
The matter proved difficult as the original buyer tried to save costs by instructing his accountant to act for him in relation to the accounting and legal aspects. However, as we suspected, the advisor did not have enough expertise to handle the legal aspects of the transaction and the matter progressed slowly before aborting.
A new buyer came in, instructing a firm familiar with the pharmacy sector like us, and the deal moved along far more smoothly completing within four months of signing the heads of terms – a typical transaction length. The purchase price was made up of a completion payment, a deferred payment together with a net assets completion accounts adjustment involving a valuation of the stock at completion.
As with most pharmacy sales – and we have acted on a number over the last five years or so – there is often a preference for completion to occur at a particular month end for stock taking and accounting purposes. However, it is possible to complete mid-month and this transaction did so, to tie into client requirements.
