Corporate Law - 2008 Review

Author(s)
Tracey Seath

The past 11 months have developed in to a tale of 2 halves. The early part of 2008 saw Birkett Long, not unlike other commercial legal practices, very busy dealing with business owners keen to sell before the increases in the rates of Capital Gains Tax, which became effective on 6 April 2008. This rush of extra work saw the Commercial and Corporate Finance Team busy 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 cope with this high demand for our services and successfully completed on every deal before the tax deadline, resulting in a total deal value during the 3 month period to April of over £104 million.

Key transactions during this period included: supporting management throughout the Bowmark Capital buyout from August Equity; advising the management team of Fleximark Consultants Limited on the purchase of the shares not already owned by them; and a cross-border transaction where we advised the shareholders of Freedom Marketing Limited, which was sold to the US based Credit Cards Inc.

Following the early rush, transactional work certainly tailed off as acquisitive businesses watched and waited for sellers to adjust their expectations in the current market - especially as the availability of borrowing for such acquisitions tightened. One sector in particular does however remain strong and our position as leaders in the healthcare sector, within the Essex area, has been maintained as we continue to act for acquisitive clients such as Care UK and Healthcare Homes, purchasing care and nursing home businesses and domiciliary care businesses.

The second part of the year has also seen an increase in the purchase of businesses from administrators and liquidators, which has meant additional work for our Insolvency and Business Recovery Team involved in s110 Insolvency Act demergers and also pre-pack administrations.

Birkett Long has also been in a stronger position than some in attracting ongoing work during the downturn due to the areas of expertise offered by the team’s lawyers. Specialist advice is required regardless of the economic climate and the team has specialists advising on intellectual property; media; e-business and e-commerce; education; health sector clients and professionals such as primary care trusts and GP partnerships and dental practices; and franchising.

With the continuing implementation of the Companies Act 2006 we have continued our series of seminars advising clients about the key provisions they need to be aware of as the various sections of this Act have come into force. This has led to opportunities to advise directors on the new statutory duties and companies on changes to their articles of association.

2009 will see us focusing on some of our specialist areas, which we feel will feature strongly as a result of the economic downturn, such as franchising, e-business and business start ups, where people who have been unfortunate enough to lose their jobs will be looking at the opportunities for working for themselves.


Written by Tracey Seath, Head of Commercial & Corporate Finance Team, Birkett Long LLP, tel 01206 217326 email tracey.seath@birkettlong.co.uk. Tracey will be pleased to answer questions or deal with queries relating to corporate law. More information is available at www.birkettlong.co.uk.


Media
Corporate UK, 2008 Review

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