Succession buyout of life sciences consulting firm

We acted as advisers to the majority shareholder on a succession buyout of a life sciences consulting firm.

PEM advised the majority shareholder on a succession plan to ensure a sustainable, robust, and long-term future. Two directors in the senior management team assumed a controlling shareholding with the former owner continuing in the business as director and minority shareholder. Input from our PEM business tax colleagues was included to design the optimal outcome for all involved parties.

The company has a team of experienced quality assurance, regulatory and clinical research professionals, providing support to biotechnology and pharmaceutical companies primarily with their early-stage clinical development programmes.

The process had to be paused due to the operational and financial uncertainty brought about by the coronavirus pandemic. However, the business was able to weather the storm and the process subsequently recommenced. Deal structuring and negotiations were carried out remotely by PEM Corporate Finance in line with the government’s social-distancing protocols, and the succession buyout eventually completed in October 2020.

A ‘Newco’ was formed to acquire the company and to allow the share structure to reflect the new team. The founder retained a minority shareholding and their position in the senior management team.

Legal advice was provided by James Lawrence and Joe Greenstock of HCR Hewitsons LLP.