The Path to Acquisition: Leading Law Firm support in taking TouchByte Global.

In early 2023, TouchByte was acquired by SALTO Systems.

While an acquisition is deemed an optimum exit strategy for many start-up founders, how many founders have a strong understanding of the processes behind the exit? Certainly not the majority.

It’s vital for founders and their executive teams to source the right external stakeholders who oversee and manage the acquisition process, to ensure a smooth and successful transaction for all parties involved.

But what should a founder search for? Aside from the obvious requirements – a firm who enable a transaction to happen within a specific timescale – what else should be on the radar?

Henry Maples, partner at Murrell Associates LLP, spoke to us post our acquisition by global leader in access control, SALTO Systems, about what a founder should have on their tick list when searching for a legal team.

Murrell Associates is a law firm delivering advisory and transactional support to corporates, investors and organisations. They’re based in Truro, Cornwall.

Find a legal team who will act as a critical friend.

“It’s vital for founders to work alongside a legal team who take on the role of the critical friend,” says Henry.

“Usually both parties to an acquisition are really excited, on board with the process, and share the aim of getting the deal done collaboratively. And so, the role of a good legal team is to maintain that positive approach and guide the parties through the legal process in a way that avoids ambiguity and misunderstanding.”

“A good legal team will think about how to get information across in a way that makes sense, and enables the business owner(s) to understand and make informed decisions about what they’re doing. The job of the critical friend is to support, not overwhelm. I think that’s a big part of it.

You can deliver great legal advice that is totally useless, because it’s delivered in a way that makes no sense, or is so dull that everyone switches off.”

Horses for courses… The right team for you might not be the biggest or fastest.

“The next thing I’d take into consideration is finding a firm that is at the right level for your transaction, and that usually revolves around value. So, we’re definitely not the right firm for everybody!” He adds.

“If you took a lawyer from a big London or US firm, who normally takes on £5 billion deals, and you asked them to advise on a Cornish or regional deal, they may really struggle to understand the context or the level of detail that is required – they’d inevitably go into everything in minutiae, because every tiny point on a £5 billion deal is worth so much! In short, you can over-egg the custard.”

“Equally, the same can be true in reverse – smaller firms sometimes bite off more than they can chew. It’s about aligning the level of resources and skillset to deal with the type of issues that are likely to come up within that business transaction.”

So, the long and short of it? Horses for courses. Finding the right fit for your business should be of the utmost importance, and focussing on business value can be a useful place to start.

Henry’s final tip for once you’ve found your legal team? Stay positive, and delegate!

“Sometimes, they can be stressful experiences. Having the ability to go through [an acquisition] with a positive approach is really important. They can go on for a long time – they often go on for longer than you ever think they will – and if you don’t have the ability to look at it as a bigger picture, it can become overwhelming.”

“It’s important to share the tasks involved with the right people in your team, so that as a team effort, you get it done. We’ve worked with some clients who struggle to give up any elements of control, and they can get themselves into a real pickle, because there isn’t the bandwidth for one person to make all of the decisions.”

“I think positivity, and appropriate delegation are the final keys to a successful transaction.”

Jeremy Sneller, the Managing Director and founder of TouchByte, now a SALTO Group Company, said: “Henry, and the team at Murrell Associates were an excellent asset for us. Their depth of expertise coupled with a human and concise manner transformed the process from something which was initially intimidating, to a simplified, and approachable task.”

As a company who have recently completed this process with great success, we must highlight the importance of finding the right team. Murrell Associates, alongside Bishop Fleming, were certainly the right fit for us, and we couldn’t have asked for more.

For any enquiries to Murrell Associates, find them here:

01872 226990

www.murrellassociates.co.uk

info@murrellassociates.co.uk
14 High Cross, Truro, Cornwall TR1 2AJ