We are helping an accountancy firm that acquired another accountancy practice worth c. £200,000. The acquisition was through an Asset Purchase Agreement and included a restrictive covenant not to “deal with or seek the custom of” the relevant clients.
Issues surfaced almost immediately after the acquisition. The acquired firm failed to provide a proper list of clients, nor access to its books and records. They also continued to deal with clients in breach of the restrictive covenants. The acquired firm claims that the client is bringing about its own demise by failing to retain and look after the clients properly.
The dispute is acrimonious and court proceedings have started. Various interlocutory applications have been made throughout, including applications to strike out the claim. We are pleased that we are able to support and guide our client through this stressful process.