News & Publications

Deals in Uncertain Economic Times

Author(s)
David Cammack

With business owners keen to sell before the increases in the rates of Capital Gains Tax (which came into force on 6 April 2008), there was a rush of extra work for lawyers in Birkett Long’s various specialist teams who between them completed deals worth more than £100M in the period from 1 February to 5 April.

The Commercial & Corporate Finance team were particularly busy with buying, selling and refinancing companies and businesses of all shapes and sizes. With one of the largest specialist teams in Essex, we were able to respond to clients by providing lawyers with a broad range of skills across areas such as contract and employment law, intellectual property, equity and funding, mergers and acquisitions, and property law.

The type of deals successfully completed up to the 5 April deadline included a wide variety of work across many business disciplines. Share sales were completed for businesses in the insurance, equity release, fitness/leisure, online marketing and security sectors, as well as a deal for an industrial boring and drilling company. Several companies wanted to sell assets or property amongst which were a gift shop, a domiciliary care provider and an online skills tracking company.

Despite economic uncertainty, not every business was selling. Asset purchases and share purchases were completed by our team on behalf of clients in the care provider and sales promotion sectors, and we undertook work for clients from a plant and machinery rental company who were engaged in a majority share buy-back.

We also acted for clients who were purchasing businesses, de-merging, changing venture capitalists and issuing share subscriptions, to bring the total deal value in this period to over £104M.

Although there is undoubted nervousness among business owners and management, our activity in the early part of 2008 demonstrates that there are still sectors – particularly service providers – that remain strong. Our specialists are very much involved in assisting clients in the healthcare professions but we continue to advise buyers and sellers from a variety of businesses of all sizes.

David Cammack is a partner at Birkett Long LLP and can be contacted on 01206 217311 or email david.cammack@birkettlong.co.uk.

Media
Colchester Business Gazette

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