A trade buyer was looking to expand its footprint of key automotive brands and approached a family-owned business, to purchase a number of franchised dealerships.

The buyer required the sellers to re-organise their group, prior to disposal, removing several dealerships which were not wanted by the buyer and the buyer wanted protection across the business, including the additional exposures from there-organisation.

The buyer had used its in-house legal and financial teams to carry out much of the due diligence and its reporting was not documented in great detail.

Icen Risk used its extensive in-house legal, financial and tax expertise to work with the buyer to understand its due diligence findings and the recent re-organisation.

Within a tight transaction timetable, Icen Risk was able to provide a buyer’s W&I policy, which covered the legal and tax risks associated with the re-organisation, as well as the broader business risks associated with the seller warranties & indemnities.