This, old-established, 2 partner practice had struggled for a number of years following serious damage done to the business by a 3rd partner who left in difficult circumstances which, at the time of the sale, had potential PI implications with the possibility of litigation.
The partners had identified a preferred buyer but required assistance with the negotiation and co-ordination of the sale – there was also the need to try to put in place a competitive buyer. The preferred (and ultimately successful) buyer was a fast-growing, regional practice wishing to establish an office in an important West Midlands city.
The negotiations were complicated by the onset of the recession and by the number of elements to be included – in particular, the on-going remuneration and notice arrangements for the partners. Over a number of negotiations, the price for the business was eventually agreed based on a % of Recurring Fees, the purchaser was persuaded to take on substantial indebtedness and very fair arrangements were concluded for the partners. The deal was very slow in completing and was a first class demonstration of the problems of dealing with a single buyer. A great deal of time and effort was required to keep the deal live.