Head of Corporate Alvin Ittoo and his team recently completed the sale of leading VAT technology firm euVAT Online to global tax-tech solutions provider Cygnet Infotech.
The transaction was an asset sale involving the acquisition of the goodwill, business and intellectual property rights comprising the euVAT Online business. The business has been at the forefront of VAT technology for more than 25 years and has won awards for its technology, which is renowned among leading tax advisers and blue-chip companies. This meant that there were particularly important considerations around intellectual property required as part of the process, as is the case when selling any technology based business.
Alvin and his team assisted euVAT Online and its director Martyn Redman in negotiating the terms of the transaction with Indian based Cygnet and their legal representatives. With any asset or share sale there will invariably be a certain level of negotiation over the terms of the final sale agreement and it is the job of the lawyers to ensure that the terms contained therein are as protective as possible. That being said, what is sometimes just as important is to properly assess the risk and balance commercial considerations with legal ones. This is something which the business lawyers with commercial acumen pride themselves on when dealing with these types of transaction and the Corporate team did just that here. “Suggestions for improvement to provide protection were all very welcome. Suggestions were always commercially sensitive” said Martyn of his dealings with Alvin and the team.
“Taking a commercial view is crucial. If you only wear your lawyer hat when approaching business sale negotiations and fail to assess the actual risk and the commercial benefits of being pragmatic you could delay or even scupper the deal. This is why we always approach these negotiations with one eye on the potential business reasons for being flexible where appropriate” said Alvin when discussing business sale negotiations.
Martyn Redman, a return client of Acumen, had further positive words to share about his experience working with Acumen on the transaction. “This is the second occasion I’ve worked with Acumen and again very successfully. Working with Acumen, and Alvin in particular, has been a pleasure. They provided quick and straight forward responses. Needless to say, I would not hesitate to use them again”
Those quick and straight-forward responses were key to ensuring a smooth transaction which ended with smiling faces all around.
Alvin, the Corporate Team and everyone at Acumen wishes Martyn, euVAT Online and Cygnet well for an exciting future!