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Salt Engineering Limited: A Case Study


Introduction

Salt Engineering Ltd has been established since 1945, and whilst ownership has changed on a couple of occasions, it continues to provide a comprehensive range of quality precision engineering services to the automotive, aerospace and other sectors. It has built its reputation by offering a complete precision engineering service, tailored to meet its customers’ needs, schedule and budget.

Case Study

I got involved with Salt in 2008 when I was offered the opportunity to purchase a stake in the Company. I agreed to purchase a minority holding whilst my two business partners purchased the remaining shares. I was also asked to advise the purchasers and prepare the legal documents required to effect the sale. This involved explaining all the legal issues in language that non-legal persons can understand and drafting the documentation including a Share Purchase/Shareholders’ Agreement, new Articles of Association, board/shareholder minutes and associated documents.

I was appointed as both a director and the Company Secretary. I attended board meetings, advised on legal matters and offered thoughts and ideas on strategic direction.

In July 2014, an engineer/businessman offered to purchase the Company and the negotiations began. This time, I was adviser to the sellers which involved reviewing the Share Purchase Agreement (prepared by the purchaser’s legal adviser) along with all associated documents and drafting a Disclosure Letter in response to the warranties required by the purchaser.

The sale completed on 17th October 2014.

As an adviser, I would not normally purchase shares myself but, if you are selling or purchasing a business, I can get involved as little or as much as you like. This ensures that you have control over the costs. Typically, lawyers will offer a package of advice/support for a purchase or sale which often means that, for the smaller deals, the legal fees are prohibitive.

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