20 May 2013
Successful settlement secured in lieu of outstanding payment after business sale
Following the sale and successful handover of a property management business, B P Collins LLP was instructed by the seller to assist in the recovery of unpaid consideration after a dispute arose between the parties over the terms of the sale agreement.
Whilst the firm had not acted in conjunction with the sale of the business, the Litigation and dispute resolution team was instructed to resolve what had turned into a firmly entrenched dispute over the terms of the agreement, following various allegations of misrepresentation as to the business and its value.
Despite the parties undertaking a mutual process of negotiation, due diligence and agreement as to the sale price and setting out clear payment terms by agreement, the buyer subsequently refused to make the final deferred payment. The buyer then made threats of litigation after having run the business for a period of around two years following the sale.
In spite of the parties' deep-rooted positions, by a process of negotiation and the employment of litigation tactics, B P Collins LLP was able to successfully resolve the dispute, eliciting a settlement payment in lieu of the outstanding sum.
Simon Carroll, Associate