Corporate Finance Deal Done!

Category: Corporate Finance - Posted On: Jan 14 2020


We recently completed a business purchase to the value of £3.25m for a company in the leisure sector.

Our client is a Scottish tourism business that was looking to expand their portfolio through acquisition.  EQ acts for many leisure businesses in Scotland and has extensive expertise in the issues involved.

What type of work was involved?

The seller had an unusual business structure in that it held its land and buildings personally, but the trade was owned in a separate limited company. The deal therefore had to be structured to ensure the trade and property were able to be acquired simultaneously. Throughout the negotiations, EQ led the discussions into structure, LBTT, VAT and capital allowances, together with the completion accounts mechanism for the purchase and securing financing for the client.

Why was the work undertaken?

EQ’s specialist leisure team are in regular contact with the client and the owners had expressed a view of expanding should the right opportunity present itself. Our leisure and corporate finance experts worked in tandem to ensure that the right pricing and financing structure was put in place initially before working on the detail, specifically ensuring that any “deal busters” were dealt with to avoid unnecessary delay and undue cost. Our clients progressed, confident in the knowledge of how and when the deal would conclude.

What was the outcome?

From the initial offer, 6 weeks later the deal was completed as initially agreed with the land and trading company shares being acquired and immediately incorporated into our client’s own business. Completion accounts were agreed 4 weeks later, and the final payments were concluded.

If you are looking for more information, advice or support with an acquisition or any form of Corporate Finance (CF) work, please get in touch with our CF team on corporatefinance@eqaccountants.co.uk or call one of our offices today.