Dealmakers Podcast

Legal Aspects Of Buying A Business With John Andrews

Acquisition lawyer John Andrews explains purchase agreements, warranties, indemnities, deferred consideration, asset purchases, share purchases, SPV risk, and shareholder protections for UK business buyers.

Listen to the Episode

Episode 168  |  Runtime: 20:06  |  Audio Episode

Listen to the Episode

Hear John Andrews explain the legal documents, risk controls, and deal protection points that matter when acquiring a UK business.

Episode

168

Runtime

20:06

Topic

Legal aspects of business acquisition

Format

Expert interview with acquisition lawyer John Andrews

Key Takeaways

Three legal lessons for acquisition entrepreneurs buying businesses in the UK.

Purchase Agreements Control Risk

Asset purchase agreements and share purchase agreements should set out price, payment terms, restraint of trade clauses, warranties, indemnities, and completion mechanics with precision.

Warranties And Indemnities Are Not The Same

Warranties create contractual promises, but claims can be costly and hard to prove. Indemnities are used for specific risks found in due diligence and can provide pound for pound recovery.

Structure The Buyer Before Completion

Articles of association, shareholder agreements, share classes, good leaver provisions, bad leaver provisions, and SPV structure should be dealt with before value is created.

Episode Breakdown

In this episode, Jonathan Jay continues his discussion with his acquisition lawyer John Andrews on the legal side of buying a business. John explains what a purchase agreement should contain, including financial terms, payment mechanics, restraint of trade clauses, warranties, indemnities, and the practical limits of making a warranty claim after completion.

The discussion then moves into deal structure and buyer protection. John covers deferred consideration clauses, time of the essence wording, seller protections, voluntary winding up, wrongful trading, asset purchases, share purchases, transfer at undervalue risk, and why buyers must examine key contracts for change of control provisions before committing to a transaction.

The episode closes with legal structuring for acquisition entrepreneurs who are building a group or buying through an SPV. John explains why articles of association and shareholder agreements should be handled early, how different share classes can support tax planning, and why good leaver, bad leaver, minority protection, and restraint clauses can prevent expensive disputes later.

Best For

  • UK business buyers preparing to instruct an acquisition lawyer.
  • Dealmakers comparing asset purchases and share purchases.
  • Buyers negotiating warranties, indemnities, and deferred consideration.
  • Acquisition entrepreneurs using SPVs or group structures.
  • Buyers who need stronger due diligence before signing heads of terms.

Questions Answered In This Episode

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  • Step-by-step acquisition roadmap
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  • Due diligence checklists
  • Deal closing procedures