I have recently bought or sold a business. How will earn outs and deferred consideration be affected by coronavirus?
A common feature of corporate acquisitions is that part of the consideration is paid on deferred terms or by way of earn out over a period of years following completion. Where deferred consideration is payable, this is either on the basis that outstanding payments will be made on scheduled dates or, less usually, subject to certain agreed (typically financial) objectives being met. These objectives almost always relate to a period before completion of the deal and are dealt with as part of a completion accounts mechanism.
Related FAQs
Yes, but be reasonable and sensitive to avoid any claims of associative or indirect discrimination.
A new Permitted Development Right has been introduced providing restaurants and cafes, drinking establishments with expanded food provision to temporarily provide takeaway food. The new right came into force on 24 March 2020 and expires on 23 March 2021. The right is subject to three conditions:
- The developer must notify the local planning authority if the building and any land within its curtilage is being used, or will be used, for the provision of takeaway food at any time during the relevant period
- Change of use to the provision of takeaway food under the Right, does not affect the use class which the building and any land within its curtilage had before the change of use
- If the developer changes use to the provision of takeaway food under the Right, the use of the building and any land within its curtilage reverts to its previous lawful use when the Right expires or, if earlier, when the developer ceases to provide takeaway food.
Alcohol will still be subject to the same licensing requirements. At this stage, it is not clear how the Right will interact with any current planning conditions placed on an establishment. Enforcement however remains discretionary. A link to Statutory Instrument 2020 No.330 is below.
Arrangements for end point assessments can be modified or rescheduled. End point assessment organisations should engage with External Quality Assurance Providers to agree arrangements for the end point assessments where face-to-face assessments are being modified. Where rescheduling is required due to Covid-19 issues and there is a specified time limit for the ESA post gateway, a further pause of 12 weeks is allowable. This should be recorded by the training provider in the ILR.
Yes. You should be able to furlough a suspended employee subject to all other eligibility requirements however we recommend that you take advice on this before doing so.
For the purposes of collective consultation, making someone redundant and/or changing terms and conditions of employment, by termination and re-engagement, is also classed as a dismissal by reason of redundancy and so has the exact same consultation requirements.