Cheso Consulting has recently acted as the legal advisor on the sales side of a significant M&A acquisition of an Italian company by a listed French group in the personal protection equipment market.
Working for the client, a family-run business with a turnover of €11m, Cheso Consulting became involved at the negotiation stage, helping to prepare an analysis of the company structure and, in conjunction with tax advisors, analysis of the balance sheets.
After due diligence in order to identify and fix any issue that can affect the valuation of the business, the process moved on to detailed negotiations with the potential buyer. Cheso Consulting provided assistance to the sellers during meeting until a successful sale agreement was reached.
From there, a Letter of Intent and Share Purchase Agreement were drawn up along with side agreements, and the firm remained available to the client until all formalities were completed and the sale could successfully proceed.
Attilio Cheso, Managing Partner of Cheso Consulting, said:
“We are delighted to have brought about the successful sale of our client’s business to the satisfaction of all parties. This is a prime example of how important it is to have not just good, professional legal advice when undertaking any business sale, but to have in-depth advice about how to prepare a company for sale and have someone on hand to offer guidance throughout the process.
“Too often, particularly with family-run businesses, not enough attention is paid to the structure of the company over the years, not all processes are fully compliant, and then when it comes to sell, you hit barriers. By starting the process early, maybe a year or so before you are thinking of selling, there’s time to look closely at all operational matters and fix any issues that might affect the valuation. It helps to get your house in order so that you can answer easily and effectively any questions a potential buyer might have, and show that all business matters are in good order.”
Cheso Consulting has offices in Bedford Square in London and in Mumbai, and developed out of Attilio Cheso’s international law practice in northern Italy. It was deliberately devised as a consultancy to allow its expert team to not only offer legal services, but also to coordinate expert assistance for those seeking support with further services, such as banking and financial regulations and tax advice for foreign investors. Cheso Consulting works with companies and individuals on anything from international contracts and corporate due diligence to the buying and selling of businesses.
Attilio added:
“Cross border arrangements, particularly between UK firms and Europe since Brexit are not as straightforward as they once were. There are significant differences in the legal systems of different countries, not to mention cultural and language barriers, and having support throughout, not just on the legal side, is vital.
“Our services are tailored to each individual client and this recent transaction is a good example of that. Our assistance in meetings was, I would say, crucial in convincing the buyer that the businesses was properly structured and organised, particularly as it was family-run, because it is natural for the buyer of any small business to have fears that the business might not perform adequately once the founders or family owners are no longer involved,
“In turn, our clients were confident that they were being represented properly in all aspects of the sale, not only legally, but through the other professionals we work with, such as tax advisors and accountants, so that they were getting a transparent and fair deal.
“The consultancy side of Cheso is what makes us different. We are able to provide a 360-degree service, and one that is accessible to smaller businesses. SMEs are our core business – smaller, often family-run businesses who rely on good-quality advice and assistance when it comes to some of the biggest decisions they will ever have to make.”
Find out more about Cheso Consulting at www.cheso.co.uk