A groundbreaking legal platform is set to transform the process of buying small businesses in the UK by offering a fully automated legal service.
The platform, developed by a UK-based law firm, promises to facilitate mergers and acquisitions (M&A) for businesses valued between £500,000 and £15 million. By automating legal procedures, the service aims to reduce costs significantly, with packages starting from as low as £2,000. James Howell, managing director of the firm, highlights that the platform is designed to cater to buyers, brokers, and corporate finance specialists, offering an alternative to traditional legal services.
Mr. Howell, who leads both the new venture and a commercial law outfit in Bristol, noted that the M&A process remains consistent regardless of business size. Consequently, the platform uses the same documents and processes for all transactions but at a fraction of the cost traditionally incurred. This innovation seeks to alleviate the financial burden on small businesses struggling to attract buyers due to high transaction costs.
Currently in a ‘soft launch’ phase, the platform is anticipated to formally launch before the end of the year. It uses artificial intelligence to streamline operations, allowing users to bypass fees associated with business valuations and listings, as well as non-disclosure agreements and due diligence questionnaires. There are no transaction fees, adding to its appeal for cost-conscious buyers.
The pricing model offers three tiers: a bespoke share purchase agreement at £2,000; an agreement with an AI-generated due diligence report at £3,000; and a comprehensive package including legal advice at £5,000. An additional charge applies for shareholder agreements, while bespoke legal advice is available for complex deals.
Beyond cost savings, the platform provides tools such as a deal management system and a secure data room, enhancing transparency and efficiency. Buyers and sellers can interact directly, bolstering negotiation effectiveness. Moreover, a dedicated forum allows professionals to exchange insights and network, while marketing support helps sellers enhance their listings.
By leveraging technology, the platform aspires to open up the market for smaller enterprises that are often overlooked due to prohibitive legal fees. Mr. Howell expressed the challenge in servicing the smallest businesses under traditional models, citing minimum fees as a barrier. This platform represents a significant step towards innovation in the legal industry, offering a simplified, accessible alternative for those engaged in M&A activities.
As legal services continue to evolve with the advancement of technology, this innovative platform stands to disrupt traditional legal practices, making the M&A process more accessible and cost-effective. It reflects a forward-thinking approach to legal service delivery, particularly beneficial for small businesses seeking acquisition avenues.
