Our client is well-established in the automotive and aerospace engineering industry and we have advised it on previous acquisitions and commercial agreements.
On this occasion we acted in its purchase of a small family company specialising in the wholesale distribution of screws, fixings and other components. Despite the low value of the transaction, there were some complex matters to be addressed including consultancy agreements for the sellers, price adjustments and issues surrounding the property which the target company occupied. The matters around consultancy agreements and the property required the advice of our Employment and Commercial Property lawyers respectively.
We assisted our client in re-negotiating substantial terms of the acquisition, with our client achieving a reduction of around 20% of the original purchase price, (as a result of the effect on the target’s business and therefore value caused by the Coronavirus pandemic).
Our longstanding relationship with our client meant that we were alert to its requirements and sensitivities and able to protect its interests throughout the transaction.