In the latest episode of the Business Buying Strategies podcast, experienced M&A lawyer John Andrews of JMW reveals the most effective deal structures for buying a business without using any of our own money.
John is The Dealmakers Academy’s recommended lawyer and has completed deals with many of our Mastermind clients.
In this podcast episode – recorded at the last Dealmakers M&A networking event in Manchester – John walks through the specifics of the dealmaking process from a legal perspective.
Robust legal due diligence is essential to ensure you protect your personal assets and limit liability. Understanding the legalities involved with buying a business is important, and John talks on a broad range of topics from working with a M&A lawyers, structuring the business the right way, differences between types of purchases, warranties and indemnities and due diligence.
If you have not yet purchased your first business or you are looking to start acquiring businesses soon, listen to this episode so you have a good understanding of the legalities involved.
Here are the key highlights:
01:11 Why it is important to understand the legalities of buying a business
01:27 An introduction to John Andrews
02:37 The importance of a good M&A lawyer
02:49 The role of a commercial lawyer
04:19 Ways to structure your business for acquisition
08:33 The importance of a shareholders agreement
10:25 The differences between a share purchase and asset purchase
15:42 Understanding warranties and indemnities
17:19 Why it is important to do your due diligence
18:30 How to structuring deals for success
Here is what you will discover…
- What the best company set-up is for a business acquisition (and the company structure you should always avoid)
- How to structure holding companies the right way (this is essential to protecting your businesses)
- The difference between an asset purchase and a share purchase (and when to use each one)
- Why an asset purchase is far less risky than a shares purchase
- Why a shareholder agreement is one of the most important documents you need if you have a partner/partners (make this a priority today)
- What you need to put in your Head of Terms to avoid costly issues later in the process (that could even cause a deal to collapse)
- Why it is a bad idea to cut corners with due diligence
- What the right time is to bring in legal support during the process
- Why a lack of real M&A experience on the part of the vendor’s lawyer can kill a deal (and how to avoid it)
** Looking for a great acquisition lawyer in the UK? Use mine! **
If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at (0345) 2412494 or email him at johnandrews.deallawyer@jmw.co.uk.
Ready to get started?
Here’s how you can start your business buying journey…
Watch my FREE Dealmakers webinar training:
https://www.dealmakerspodcast.com
Get a FREE copy of my book:
https://www.thedealmakersacademy.com/free-book-giveaway
Join the Business Acquisition FastTrack course
https://www.thedealmakersacademy.com/quick
Already bought a business?
if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria on hello@thedealmakersacademy.com for more information.
Business Buying Strategies from The Dealmaker's Academy