Huntley Legal's Blog
17 January 2020
Are you a supplier and you want to get out of a contract with a customer?
Let’s assume there is no underlying dispute, and no controversial reason why you want to leave. Maybe you are moving into a different line of business or need to be free to deal with a different set of clients. It’s more complicated if you want to get out of the contract because of the customer’s bad behaviour (see links below).
This article explains how to prepare and manage your exit as best as possible, to reduce risks and the inconvenience that might arise if you do things clumsily or in haste.read more »
10 January 2020
The start of a new year is a good time to stop and plan your legals for the year ahead. Also, now that we are edging towards Brexit, it’s a good time to identify any issues in your contracts that might be affected. Here are some practical suggestions for you to consider.read more »
28 November 2019
We recently wrote about everyday practices that will hurt the sale of your business. This time, we build on that by looking at issues to consider when preparing to sell.read more »
14 November 2019
None of these practices are outrageous in themselves. They are simple little drifts away from best practice. In real life, they happen all the time.
Because of that, you probably take them for granted. You wouldn’t even think about them in the context of selling your business, or your perception of its value.
BUT the buyer’s due diligence WILL pick up on them. And then there is a risk the buyer will:
- Walk away from the deal
- Reduce the price they are willing to pay
- Make you jump through lots of hoops to address each issue before completion
24 October 2019
An early-stage business often looks for introductions to significant investors and potential clients.
The first source of investment might be to turn to friends and family, or your own credit cards. But, at some point, you might want to seek funding from strangers.
If you sell B2B services and you’re targeting corporate clients, you might try to talk to senior decision-makers there. But they’re busy people who are hassled by suppliers all the time. As such, they are unlikely to take your call.
It seems the world is full of suave and sophisticated business people who are willing to connect you to the right individuals... for a fee.
They are typically equipped with their own agreement for you to sign. It might look like a low-key 1- to 3-page letter, and they’ll tell you “there are no legal fees to set up the arrangement”.
I have two groups of clients who bring me these agreements:read more »
10 October 2019
Bootstrapping is quite common for startups, entrepreneurs and fledgling businesses who have little or no funds. They try to avoid spending while they get their business established. Often, they can’t get investment until they reach a certain point, so they want to get by ‘on fresh air’ until the money comes in.
This is perfectly understandable, and can be wise, but trying to save money on legal matters early on can lead to unhappy outcomes in future.
Things people do in an attempt to save money...read more »
26 September 2019
Traditionally, a management buyout happens when managers who are already embedded within the company decide to borrow or spend money they already have to buy the company they work in.
That’s the simplest end of it, and this type of management buyout still goes on.
In recent years, many management buyouts are really private equity deals that are managed by private equity investment funds. Either they get involved with the management team that stays on, or they bring in their own management team. As part of the deal, the existing management team, or the implanted management team, will take a part of the equity in the company as part of their pay – which is seen as a way to tie their interests to the success of the company after the deal.
There is also the intriguingly named ‘bimbo’ crossover arrangement. That’s a combination of a management buyout and a management buyin, where the new owners keep some of the existing managers, and bring in some of their own, and also provide some money to take the business forward.read more »
12 September 2019
In this article, you’ll discover when and why you might take on an existing business-to-business contract as a supplier. Obviously, the advice is a little different if you are the customer in the relationship. Perhaps I’ll write about that another time.read more »
22 August 2019
If you don’t know your duties as a company director, it’s at your own risk.
Director duties arose out of different sets of law. Historically, they were covered by case law and common law that had derived from trust law. As a result, director duties became complicated and hard to pinpoint. They were quite well recognised by lawyers, but not so much by directors.
The Companies Act of 2006 aimed to clear it up, by establishing seven key duties that are now simply put in statute so you don’t need to check any further.
Here’s what company directors must do:read more »
08 August 2019
In recent months, I’ve helped several clients with their contractual arrangements. Although the details of the problems were quite different, they all shared the same underlying problem. They didn’t keep a constant watch on the basics.
Being vague about contractual details, or failing to check them properly, can lead to dire consequences, delays, disputes and extra costs.
This article explains the key points you need to know… and then keep checking… even when you are sure you know them.read more »