Advising on the acquisition of a manufacturing company

Blick Rothenberg was instructed to conduct the financial and tax due diligence for the German purchaser in a £20 million acquisition of a UK manufacturing company.

Working in conjunction with the client’s appointed UK legal advisors, Blick Rothenberg project managed the due diligence, reporting its findings to a tight deadline.

In addition to the usual review of financial records, the due diligence work also involved lengthy interviews with the incumbent management and the company’s auditors and tax advisors. A number of weaknesses in the accounting records were identified, providing the client with additional leverage to conclude the acquisition on favourable terms.

Blick Rothenberg also assisted with negotiations between the purchaser and vendors, a task complicated by the cultural differences between the German purchaser and the UK vendors. The availability of German speaking partners at Blick Rothenberg assisted greatly in explaining the nuances of the transaction and the normal UK methods for completion, including earn outs and completion accounts, leading to a successful completion of the acquisition.