Migitating Risks and Maximising Returns in M&A
Navigating Hidden Liabilities and Deferred Payments
When our client, a purchaser of an LTD, approached us, they were facing a challenging dilemma. They wanted to minimise the risks associated with potential hidden liabilities, such as employee claims, when acquiring a company. Additionally, the client aimed to make deferred payments, putting down as little capital as possible upfront while ensuring the purchase price was contingent on the business's financial performance post-acquisition.
Why Gaffney Zoppi
At Gaffney Zoppi, we pride ourselves on offering high-quality, results-oriented services. Our expertise, evidenced by our five-star reviews, and commitment to building strong client relationships uniquely positioned us to address this complex issue.
Crafting Comprehensive Solutions
To tackle the client's concerns, Gaffney Zoppi took a different approach. We drafted comprehensive indemnities and warranties in the SPA that significantly favoured the buyer, providing them with substantial protection against hidden liabilities. Additionally, we designed a deferred payment mechanism that allowed the client to put down just 10% of the purchase price upon completion, with the remainder contingent on the company's financial performance meeting their expectations.
This innovative strategy not only reduced the client's financial exposure but also ensured they had the necessary safeguards in place. By structuring the deal this way, Gaffney Zoppi empowered our client to proceed with confidence, knowing they were well-protected while minimising their immediate financial outlay.
What They Had to Say
Client's Review (paraphrased): "We couldn't be happier with Gaffney Zoppi's services. They went above and beyond to minimise our risks and structure a deal that aligned with our goals. Their practical and pragmatic advice made all the difference."
At Gaffney Zoppi, we thrive on delivering innovative solutions tailored to our clients' unique needs, and this case study showcases how we consistently do things differently to achieve exceptional results.