LPC Law Notes Private Acquisitions Notes
A collection of the best Mergers and Acquisitions* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Mergers and Acquisitions notes available in the UK this year. This collection is f...
The following is a more accessible plain text extract of the PDF sample above, taken from our Private Acquisitions Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Property and Environmental Aspects
Property Aspects
Issues for Buyer
Essential element is that Seller/Target has good and marketable title to the Properties so on both share sale and asset sale the Buyer will want to check:
Value of property
That title is vested in seller (business sale) or target (share sale)
Any contingent liabilities
Any contingent environmental liabilities
Relevant planning permission obtained
Can be used for actual and proposed use
Any third party rights adversely affecting the Property
Full information in respect of SDLT history
Any charges or debentures burdening Property
Any consent required for transaction to go ahead:
Landlord’s consent to assign (business sale)
Consent under a change of control clause (share sale)
Due Diligence
Specifically going to be looking for existence of any:
Original Tenant Liability | If Tenant was original tenant of an Old Lease, remains liable to landlord for tenant covenants in the lease infinitely:
|
Authorised Guarantee Agreement | If Tenant was original tenant of a New Lease then tenant will automatically be released from any obligations under the lease if assigned BUT:
|
Tenant’s Right of First Refusal | Where property is mixed commercial/residential, residential tenants will have:
This means on a Business Sale where Target’s business is mixed residential/commercial and Seller wants to sell the multiple occupation property, residential tenants must be offered it first. |
Security of Tenure | Under S30(1)(g) LTA 1954 a Landlord can oppose application for new tenancy if landlord intends to occupy the property itself. Needs to be considered:
Not relevant on a share sale because:
|
Establishing Good and Marketable Title
Buyer will want to ensure they acquire the property with good and marketable title so need to establish:
Seller has good title to all properties
All properties have benefit of all necessary rights required for use/enjoyment
Properties not subject to onerous conditions/third party rights
Properties can be used for purposes intended by Buyer
Investigating Title & Protection
Business Sale | Share Sale |
All properties elected/included in transaction will transfer to Buyer Normal investigation of Title will occur via: · Investigations/Searches/Enquiries · Certificates of Title; or · Property Warranties | The properties owned by the Target do not change hands, they stay with the Target so different conveyancing process to normal. Buyer can obtain protection via three methods:1. Investigation of Title · Title investigated in normal way by Buyer’s Solicitors · Will be done if property important/big part of transaction/Target’s major assets · Expensive/time consuming however 2. Certificate of Title · Useful if Investigation of Title already been done · Provided by Seller’s Solicitors · Remedy = negligent misstatement against Solicitors · Buyer can request warranty guaranteeing truth/accuracy · Negotiation takes time but quicker than Full Investigation Seller’s solicitor will seek to limit liability via: · Disclaimer that won’t accept responsibility re information · Certificate expressed to be for benefit of that particular transaction only · Limit on financial liability 3. Property Warranties · Lowest level of protection · Used for unimportant properties in general scheme · However only as good as person giving them · If Seller has limited resources – unattractive warrantor · Recovery under warranties subject to uncertainties of litigation |
On the whole – relevant factors will depend on each parties bargaining powers and their resources. If one is stronger than the other then they can force the other to do an investigation or give extensive warranties. |
Environmental Aspects
Having bought the property, the Buyer can be liable for costs of cleaning up contaminated land even if they were not responsible for the original contamination. Can be forced to clean up as a result of contamination notices served by Local Authorities.
· Whether contamination is an issue should be considered in every transaction
· Will allow Buyer to
Liability for Clean Up
Local Authority will notify Interested Person of Contamination:
· Class A – original polluter
· Class B – occupier, if original polluter cannot be found
· If more than one person responsible for pollution, can agree amongst themselves who is responsible for clean-up and apportion liability
Buy the full version of these notes or essay plans and more in our Private Acquisitions Notes.
A collection of the best Mergers and Acquisitions* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Mergers and Acquisitions notes available in the UK this year. This collection is f...
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