Breach of purchase agreement arising from company sale

The Client: Midsize construction and renovation business

Value of Dispute: £300,000

The Commercial Dispute:

A construction and renovation business was to be sold to one of its suppliers. The sale agreement was documented, consisting of an upfront payment with 70% of the purchase price deferred. 

The agreement was based around a convoluted and poorly drafted set of consultancy arrangements, which would in theory see payments linked to the performance of the business over the following couple of years. 

The purchaser of the company backtracked on the deferred payment, worth around £300,000, unjustly alleging breach of the consultancy without justification.

How Escalate Resolved – Services Used:

Prior to Escalate’s involvement, the client did not have the funds to pursue a claim. In addition, it no longer had control of the company’s budget, so the purchaser had the upper hand, and was refusing to discuss or negotiate. 

The introduction of the Escalate team immediately levelled the playing field. Court proceedings still had to be issued to force the purchaser to the negotiation table, but a successful resolution was achieved through mediation. From initial instruction to resolution, the whole debt plus costs was recovered within seven months.

The purchaser breached the agreement and reneged on the deferred consideration, alleging breach of the consultancy without justification. This was purely an act of unwarranted aggression and greed, and the claim for deferred monies was worth circa £300k.




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