PROMOTION Corporate Transactions Important Considerations during the Covid-19 Pandemic "he Covid-19 pandemic has led to a reduction in economikcactivity and willinevitably lead to some buying and selling of businesses being put on hold. However, parties looking to progress transactions shouldconsider how to allocate knowledge at a particular time and cap risks associated with the pandemic. remain solvent and profitable. Specific warranties may give the buyer an understanding of the target company's planning and financial position. A seller will want to limit such statements to their reduced. A selling party will resist this but it could allow the transaction to complete and have a time limitation. PRACTICALITIES Electronic communication has meant their financial liability. Specific indemnities related to the pandemic may be sought by the buyer so that the seller will reimburse them for a that transactions can continue with minimal physical contact. The due diligence process can be conducted electronically so there is little need for a physical "data room". Agreements can be signed remotely or electronically. DUE DILIGENCE Buyers may wish to ask for details on the following points during the due diligence process: Risk assessments/scenario planning Insurance policies Supply chains Solveney of the target company Existing commercial agreements and termination provisions particular liability should it arise, Again, a seller will look to limit its liability under such indemnities, their ability to do this depends on the relative bargaining position of the parties. Video and telephone conferences allow parties to continue communicating and law firms are generally well equipped to work in this manner. PURCHASE PRICE ADJUSTMENT A buyer may also seck a mechanism for the purchase price to be adjusted should the target company's profits be At Longmores, we are using our electronic resources to ensure that we can continue offering the same professional service to our clients. WARRANTIES AND INDEMNITIES Buyers will want assurances from the seller that the target company is prepared for the pandemik and can Get in touch with the Longmores Company Commercial team www.longmores.law enquirieselongmores.law 01992 300333 LONGMORES SOLICITORS If you have concerns about your business or personal matters during the coronavirus crisis, get in touch and we will offer advice or point you in the right direction. We are passionate about providing an exceptional service and will do everything in our power to continue to do so. 01992 300333 24 Castle Street, Hertford SG14 IHP longmores.law enquiries@longmores.law PROMOTION Corporate Transactions Important Considerations during the Covid-19 Pandemic "he Covid-19 pandemic has led to a reduction in economikcactivity and willinevitably lead to some buying and selling of businesses being put on hold. However, parties looking to progress transactions shouldconsider how to allocate knowledge at a particular time and cap risks associated with the pandemic. remain solvent and profitable. Specific warranties may give the buyer an understanding of the target company's planning and financial position. A seller will want to limit such statements to their reduced. A selling party will resist this but it could allow the transaction to complete and have a time limitation. PRACTICALITIES Electronic communication has meant their financial liability. Specific indemnities related to the pandemic may be sought by the buyer so that the seller will reimburse them for a that transactions can continue with minimal physical contact. The due diligence process can be conducted electronically so there is little need for a physical "data room". Agreements can be signed remotely or electronically. DUE DILIGENCE Buyers may wish to ask for details on the following points during the due diligence process: Risk assessments/scenario planning Insurance policies Supply chains Solveney of the target company Existing commercial agreements and termination provisions particular liability should it arise, Again, a seller will look to limit its liability under such indemnities, their ability to do this depends on the relative bargaining position of the parties. Video and telephone conferences allow parties to continue communicating and law firms are generally well equipped to work in this manner. PURCHASE PRICE ADJUSTMENT A buyer may also seck a mechanism for the purchase price to be adjusted should the target company's profits be At Longmores, we are using our electronic resources to ensure that we can continue offering the same professional service to our clients. WARRANTIES AND INDEMNITIES Buyers will want assurances from the seller that the target company is prepared for the pandemik and can Get in touch with the Longmores Company Commercial team www.longmores.law enquirieselongmores.law 01992 300333 LONGMORES SOLICITORS If you have concerns about your business or personal matters during the coronavirus crisis, get in touch and we will offer advice or point you in the right direction. We are passionate about providing an exceptional service and will do everything in our power to continue to do so. 01992 300333 24 Castle Street, Hertford SG14 IHP longmores.law enquiries@longmores.law