Deal structure and heads of terms
The choice between a share and asset purchase, price adjustments and deferred payment is central to the commercial agreement.
We help identify the proposed acquisition perimeter and the consequences of a share purchase or an asset transaction. The discussion includes which entities, contracts, people, intellectual property and obligations are involved, and which approvals or specialist workstreams may be needed.
Before the main documents are negotiated, we review heads of terms, letters of intent, confidentiality and exclusivity arrangements. We distinguish agreed commercial principles from binding commitments and test the proposed timetable against diligence, funding and consent requirements. Tax structuring and valuation are coordinated with the appropriate advisers.
Legal due diligence that informs a decision
The legal review is scoped to the business and transaction, not treated as an exercise in collecting every available document. It may cover corporate ownership and capital, material customer and supplier agreements, intellectual property, data and technology arrangements, financing and security, regulatory matters and employment interfaces.
A concise issues report identifies the significance of each finding, the information still required and the proposed response. Specialist employment, tax, pensions, property, competition or other advice is commissioned where the transaction requires it. Sellers receive a structured information request and disclosure plan, with ownership of outstanding questions made clear.
Acquisition documents and allocation of risk
We draft and negotiate share purchase and asset purchase agreements, disclosure letters and the ancillary documents needed to deliver the transaction. The negotiation addresses warranties, specific indemnities, liability caps, claim periods, thresholds, knowledge qualifications and the treatment of disclosed matters.
We also address the period between signing and completion: conduct of the business, access to information, third-party consents, conditions and the consequences if completion cannot proceed.
Price mechanics, deferred consideration and reinvestment
The legal questions include how much is paid, when it is paid and what can change the amount.
Headline value is only part of the bargain. Working with financial and tax advisers, we translate agreed pricing into the contract, including completion-account adjustments or a locked-box structure, relevant definitions, information rights and the process for resolving calculation differences.
For earn-outs and deferred payments, we examine the performance measure, accounting approach, operating discretion, reporting, payment dates and protections around a subsequent sale. Where founders or management reinvest, we coordinate rollover terms with the new shareholder arrangements. Financial modelling, valuation and tax opinions remain with the appointed specialists.
Signing, completion and the handover
We maintain a completion agenda covering approvals, executed documents, outstanding conditions and responsibility for each step. The work may include board and shareholder resolutions, transfers, releases, consent documents and agreed post-completion filings.
The handover records obligations that survive completion: deferred payments, information undertakings, restrictions and remaining implementation work.