LEES, The Corporate Finance Network’s member firm for the Norwich and East Anglia region, have enabled their client to concentrate on its most successful trading divisions, with the sale of a loss-making subsidiary
Banham Poultry Ltd has an extremely profitable core activity of poultry rearing and processing, but approached LEES when they were looking to dispose of a subsidiary company, Banham Compost Limited, which was not trading as successfully.
Graham Lyon, of LEES accountants, led the corporate finance team who negotiated the price and tax structure of the deal with the purchasers and their advisors, ensuring that the client dealt with the various tax aspects in the most efficient way, including the allocation of the significant tax losses.
He also handled the due diligence process dealing with questions and information requirements from Grant Thornton LLP, and advised upon the tax covenant and warranties, as well as preparing the completion accounts for the transaction, which took 11 months in total.
The deal was completed in June 2009, with Banham Compost Plc being sold to TEG plc for a consideration of £3.1 million. This allowed the management team to concentrate all their efforts on their most profitable core activities.
Leathes Prior Solicitors of Norwich provided legal advice to the client throughout this matter.
