Right can someone give me a difinitive answer on what this is.I have read over the past couple of days that if we are in due dilligence,and the deal were not to go through a sum has to be paid is this correct.Do many deals fall through once they go into due dilligence?The statement from Zabeel would indicate they have every intention of going through with it but I would just like to know the answers to the questions as i am wetting myself.
0
Comments
"The process by which a purchaser of or an investor in a company or business investigates the records of the target to support its value and find out whether there are "skeletons in the cupboard". Professional reports from accountants and solicitors may be included. The due diligence process is covered by confidentiality undertakings and supported by warranties"
The warranties here would be an agreement on a cash sum if Zabeel do not proceed.
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1074414003
Hopefully it'll take a couple of weeks, and as long as we've been honest up front, it shouldn't be a massive issue
due dilligence is a process to check that everything the boys used to sell the club is simply true.....
so as long as they didnt use any porkies then it should be a done deal...
Brilliant lay persons translation mascot!
this is all nuts isnt it!!!!!
Wikkipedia
The bigger the investment you are making the greater the potential hazard if things go wrong. When buying into a business you'd want to satisfy yourself that the company actually owns the assets it claims, that no one else has a claim on it or any significant part of it, that there aren't any upcoming legal cases or debts that you'll be held accountable for, that major assets are fit for purpose, that business performance has been largely in line with forecasts (if not, why not), that you will have the legal freedom to deal with the business in the way that you plan and probably a whole number of other things that could lead to disappointment if not uncovered.
So, in effect its a short period in which the company's lawyers, accountants, and perhaps other specialists will check everything out to minimise the risks of losing their money and/or ending up with something that they didn't want.
what sort of sponsor ship deals are available when in the prem.
I would imagine they are mainly focusing on the 47 million turnover years, at the back end of the premiership years, trying to establish the real potential.....
as I said before as long as they havnt been over egging it then we should be in....
christ i hope so.....
my father in law just got back from italy and was saying the news is all over europe......
sign the papers, you know you love us already !!!!!!
Although "Caveat Emptor" governs this sale the buyers will have included clauses about undisclosed or misleading disclosures. I a sure in the last 5 years someone bought a football club and some of the purchase price had to be returned due to non disclosure of material facts.
Of course it's a mixture of warranty and counter-warranty, just like when you buy any property. There will be statements made by the seller which the buyer will really on etc. It is still governed though by Caveat Emptor as so a prospective purchaser will want to act will due diligence to establish they fully understand what they are buying whether there are any "hidden" liabilities of which the seller may be unaware or unable to warrant.
For example, I was involved in a major due diligence exercise when the company I worked for was purchasing another business. My job was to estabilish that the company we were purchasing had effective fire, public liability insurance and that there weren't any gaps in cover which could, after purchase, lead to uninsured liabiltites arising out of things that happened before we took them over. Any potential gaps highlighted could then be brought to the negotiating table.
There are unlikely to be these kind of issues for a football club, but I suppose they would need to understand the nature of and likely outcome of trade or employee disputes and ensure that the full costs of these are understood.
As Stig says, it's just like having a survey done on a house really - but obviously involves a bit more than looking for damp in a bathroom!
Since the club announced over a year ago they were looking for investors (when they came off the stock market) I suspect that they will have a "deal room" set up already with all the key documents ready for inspection.
Hehe, that ´s true...Ashley had to fork up a lot of money just because he didn´t realise that him buying the toon meant that all stadium debts had to be paid within a month.
Can someone confirm, wasn't their some clause in the deeds to The Valley, that the land can only be used for sporting purposes? This could be very useful insurance against asset strippers.
I believe that the council will only allow sporting and ancillary purposes on the site. That is why our proposed development of appartments which would then be rented out at a commercial value has run into difficulties. I'm not aware of talk of a restrictive covenant on the land but maybe others are?
It simply depends on what has been negotiated as a precontract/heads of terms. The answer is we don't know.
Sounds like a case for class action claim by shareholders against the professionals who undertook the due diligence on behalf of prospective shareholders to me. More money for the lawyers.
Did you read the financial statements?...Or was it just a case of someone saying "It looks ok lads, while leaving beer stains on the dossier"
Sounds very much like some of those bankers who have been gambling the worlds silver on derivatives and credit swaps...:o)
I wouldn't like to be the bloke who started MyFootballClub...
No. Jordan was offered CPFC which he bought. He was also offered the freehold to SP which was owned by Altonwood (Noades) but declined to buy (or more likely refused to pay Noades the £10m he wanted at the time) and therefore entered into a ten year lease on SP instead. If he had of 'reunited' ground and club at the same time, then he wouldn't be in such a mess he is in now.
Which is a shame :-)
went through DD 3 times when we sold a 5 star hotel (£ 80 million in 96). First time was bad but by the time we did it the 3rd time was easy.
Even if the DD has risk its up to the buyer if it viable. Some would include any (evaluated) risk within their overal purchase budget.
Will report a little more in the morning but spoke to my boss at 5.10 friday. I emailed him the press report with the statement of intent. My boss is a fine acquisition lawyer and he told me the process that would be happening right now and that for it to come out at that moment was basically more or less done but we cant actually count our chickens just yet until its signed. Have seen so many deals collapse at the final hour.
I will speak to him more in the morning and try and translate the terminology the way some of us lay peole can understand.
VALLEY FLLOYD ROAD THE SAND ROLLING IN FROM THE DUNES.
For example, if you were buying a club down near Croydon, you might want to check whether ownership of the ground comes as part of the deal.