Anderson Shaw

A client who wishes to sell a larger business in the future, was advised by Anderson-Shaw to sell this small associated company first to make the larger company more attractive to buyers.  The low Guide Price hides the fact that the main objective was to transfer the substantial fixed asset liability associated with the machinery and to solvently liquidate the company to enable the repayment of substantial inter-company loans.

Shortly after the business was placed on the market, the recession hit and there was also an attempted, but ultimately unachievable bid, made by the General Manager which had to be handled sensitively.  The first external buyer pulled out when the recession hit but a suitable purchaser was ultimately found who wished to add this operation to a business operating in a similar sector.

Ultimately, the purchaser was unable to make the business work and never achieved a legal transfer of the fixed asset agreements but, in the meantime, the solvent liquidation was successfully implemented and the fixed asset agreements were paid down by the purchaser to a level where the sale of the assets will comfortably exceed the liability.