AC - Written Task Flashcards
What is the ending salutation to Dear Sir/Madam?
Yours FAITHFULLY
What is the ending salutation for direct name?
Yours SINCERELY
What are the 5 rules for approaching a written task?
- Build a client profile (5mins)
- Look over ALL info but don’t use it all
- Understand and interpret graphs
- Tailor responses to audience
- Always include an executive summary
How do we build a client profile? (5 mins)
Split page into 3 sections
1. Non-negotiables - what will the client not compromise on? E.g keeping a controlling stake in their company after an acquisition
2. Objectives - What’s the client’s end goal?
3. Concerns and issues - What obstacles or risks is the client facing now or in the future? E.g facing backlash from employees
Make sure to jot down page numbers too!
How do we calculate percentage change and how do we apply this to a case?
How do we tailor responses to our audience?
- If it’s a client/business person/ CEO, speak in clear layman’s terms
- If you’re addressing a lawyer, you can use more legal jargon
- If your audience is a marketing team, highlight practical implications like how the issue might impact advertising campaigns or compliance with regulations
What to include in an executive summary?
1) your recommendation, 2) why you’ve recommended it, 3) what the next steps are to implement it
Only a few sentences!
What is SWOT?
SWOT (strengths, weaknesses, opportunities, threats): focused on internal and external factors the company can influence
What is PESTEL?
PESTEL (political economic, social, technological, legal, and environmental factors): broader macro-level analysis
Which framework should we use for case studies?
SWOT
How do we connect client profile with SWOT analysis?
Highlight strengths and opportunities that align with the client’s goals in green
Highlight weaknesses and threats that match the client’s concerns or red lines in red
For example:
If your client is a startup and their goal is rapid growth (which you identified in your client profile), you might highlight information about a target company’s high revenue growth rate or access to new markets in green. If their concern is cash flow issues, you’d highlight a target company’s high upfront costs or poor cash flow management in orange.
If the client is an established company looking to win more market share, you might highlight a target company’s strong customer base or market dominance in green. If their concern is protecting their reputation, you’d highlight any risks of regulatory scrutiny or past scandals in orange.
If we see SHARE SALE, what should we think and why?
What is the buyer getting?
In a share purchase, the buyer inherits all of the target’s liabilities as well as its assets. This includes debts, lawsuits, or tax issues, so it’s crucial to identify any risks during due diligence.
If we see ASSET SALE, what should we think and why?
What is the buyer getting?
- In an asset purchase, the buyer only acquires what’s agreed upon (this could be, for example, a part of the business).
- It’s important to check if key contracts, any employees, or necessary intellectual property can legally transfer — missing these could issues in operating the transferred asset.
If we see APPROVALS, what should we think and why?
Do shareholders, directors, or regulators need to approve the transaction?
Without the right approvals, the deal can’t go ahead. Missing this step could cause delays or even stop the transaction entirely.
Generally, for a share purchase, you need shareholder approval.
For an asset purchase, you need director approval.
If we see ONGOING OR POTENTIAL LAWSUITS, what should we think and why?
Are there any legal claims or disputes involving the target company? How serious are they?
Ongoing litigation can lead to unexpected costs or liabilities for the buyer. The buyer might need to negotiate indemnities or warranties to protect against future legal risks.
If we see PROPERTY UNDER A CHARGE (E.g mortgage on a building) , what should we think and why?
Is any property owned by the target company secured against a loan or other debt?
Charged property can’t be sold or used freely until the charge is released by the lender.
The buyer will need to ensure the debt is repaid or negotiate with the lender to remove the charge.
In an asset sale, it’s particularly important to be sure what you’re buying is free of any charges.
If we see CUSTOMERS, what should we think and why?
Are the target’s customer happy with the goods or services the company provides?
Unhappy customers could mean future lawsuits or lost revenue for the buyer.
If we see PROPERTY, what should we think and why?
1.How long is the lease?
2. What is the property’s condition?
- This determines whether the company has long-term stability in its locations. It could also represent a financial liability.
- If the property is in poor condition, it might not be immediately usable and restoring it to working order might add an additional cost.
If we see EMPLOYEES, what should we think and why?
- Does TUPE apply?
- Are there overlapping roles between the buyer and target company (e.g. two marketing directors)?
- Are there union or employee representatives you need to inform?
- Could there be other issues?
1.TUPE is a law ensuring employees’ rights are transferred during a transaction. It prevents redundancies made purely because of the new ownership of a company.
It’s more relevant in asset sale. For example, if Company A sells its manufacturing division to Company B, you’d technically now be working for a different company from the one listed on your employment contract. The employees in the transferring division will likely transfer under TUPE.
TUPE doesn’t apply in share sales because the legal entity employing the staff remains the same. For example, if you were employed by Company A, in a share sale the buyer would buy the shares of Company A, so you’d still be employed by the same company (even though its ownership changed).
If it applies, (in an asset sale), the seller needs to inform and consult employees before the deal. The buyer needs to maintain their employment terms post-transfer.
- Duplicated roles may require restructuring or redundancies post-transaction.
This can lead to additional costs, employee dissatisfaction, or legal risks if not handled properly.
- Failing to inform or consult representatives can lead to legal risks, delays, or disputes.
- There could be other employee issues that might still arise (e.g. cultural integration, or staff with mismatched employment terms).
If we see GROWING MARKET SHARE, what should we think and why?
Will the buyer have a dominant market position after the deal?
If the deal breaches competition laws, it could trigger the CMA investigating, delaying, or even blocking the transaction.
The buyer needs to assess and mitigate these risks early.
If we see CONTRACTS, what should we think and why?
- Are key supplier or client contracts transferable?
- Do contracts contain change-of-control clauses?
- This helps identify any risks of losing business-critical relationships.
- Change-of-control clauses might let the other party cancel or renegotiate the contract if the company is sold. This could cause the buyer to lose key contracts or face higher costs after the deal.
If we see INTELLECTUAL PROPERTY, what should we think and why?
Does the target own or have the right to use its key IP (e.g. patents, trademarks, copyrights)?
If the target doesn’t own or have proper rights to its IP, the buyer could face legal challenges or lose access to critical assets, which might hurt the business’s value or operations.
