Business Brokering and Mediation

By John Isaac

Business buyers sometimes discover after settlement that something is not quite as expected with the business. Sales might be substantially less than expected or key staff members may resign shortly after settlement date. There are many issues a buyer of a new business may face, however expensive litigation is generally not an ideal situation when your precious time is mostly utilised in trying to learn the new ropes of the business you have just invested deeply in. 

The cause of disputes in a business just purchased can be varied. Perhaps due diligence was not carried out thoroughly or maybe the Vendor is not performing as agreed. Sometimes a sale and purchase agreement might not clearly provide for a specific situation that arises. Shareholders in business do not always agree on a wide variety of matters including: the value of the business, capital injections, strategic direction, operating policies, marketing plans, dividend distribution levels etc.

The benefit of utilising mediation to resolve such matters is its cost efficiency and the speed it can all happen. Is there any point in commencing a lengthy expensive litigation that takes your focus away from the new business so that by the time you have proved your point the costs have outstripped the benefits and the business that you purchased with your hard earned cash has now all but gone.

John Isaac who originally qualified as an accountant, has worked in a variety of businesses, has spent 22 years successfully selling businesses. He has also appeared as an expert witness on business valuation matters in mediations, arbitrations and in Court. John with his experience is ideally placed to resolve a wide range of business sales and acquisition related disputes.