Building energy management business Adam Communication Systems International is looking to double turnover and take on an additional 20 staff after securing a 1.5m investment from Maven Capital Partners.
One of the ways to acquire a business is to acquire shares. This brings with it a number of rewards in itself. The benefits of making the acquisition of shares in a company as opposed to purchasing the business and assets of that company can be detailed below in the first part of our 'Company Acquisitions' Guide. This first edition details the advantages of making an acquisition by purchasing shares.
Liabilities. When an attempt is made to purchase a business through shares, the purchaser then also obtains all of the current liabilities associated with the target business.
Pre-sale re-organisations. If all of the selling company's assets are not included in the sale then the purchaser will be required to strip these out before the share acquisition. This in itself can lead to complications as it may not be commercially acceptable leading to an acquisition of the business.
Dillon said the company's order book currently stands at 12m and it plans to recruit up to 20 new staff in the next 12 months. The business currently employs 45 people from its Stockport headquarters.
Maven made the investment through the Capital for Enterprise Fund (CfE) - the 75m government backed initiative launched in 2009 designed to help small and medium-sized businesses. Maven is managing 30m of the fund, with London-based Octopus Investments also running 30m.
Avoiding TUPE . TUPE, the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE) does not apply does not apply and so there is no requirement on the seller or purchaser to inform and consult employees. There are also no restrictions on the purchaser changing existing terms of employment, subject to normal employee protection.
One of the ways to acquire a business is to acquire shares. This brings with it a number of rewards in itself. The benefits of making the acquisition of shares in a company as opposed to purchasing the business and assets of that company can be detailed below in the first part of our 'Company Acquisitions' Guide. This first edition details the advantages of making an acquisition by purchasing shares.
Liabilities. When an attempt is made to purchase a business through shares, the purchaser then also obtains all of the current liabilities associated with the target business.
Pre-sale re-organisations. If all of the selling company's assets are not included in the sale then the purchaser will be required to strip these out before the share acquisition. This in itself can lead to complications as it may not be commercially acceptable leading to an acquisition of the business.
Dillon said the company's order book currently stands at 12m and it plans to recruit up to 20 new staff in the next 12 months. The business currently employs 45 people from its Stockport headquarters.
Maven made the investment through the Capital for Enterprise Fund (CfE) - the 75m government backed initiative launched in 2009 designed to help small and medium-sized businesses. Maven is managing 30m of the fund, with London-based Octopus Investments also running 30m.
Avoiding TUPE . TUPE, the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE) does not apply does not apply and so there is no requirement on the seller or purchaser to inform and consult employees. There are also no restrictions on the purchaser changing existing terms of employment, subject to normal employee protection.
About the Author:
Rickitt Mitchell provided business investment advice for this transaction. Rickitt Mitchell also provide acquisiton finance advice and exit planning advice.
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