PPSA for Dummies – Transaction Due Diligence2019-02-02T10:31:03+00:00

The PPSA for Dummies – Buying or selling a business or refinancing? Don’t stick your head in the sand.

Simon Read, founder of PPSAdvisory, is helping unravel the mystery of the PPSA and why it’s so critical you appreciate its application to your or your client’s business.

 

It’s a big topic so we’re breaking it down into “bite sized” pieces, identifying the five principle ways in which the PPSA is likely to have application to your business:

 

 

So, if the PPSA is all about security interests in equipment, assets etc, what part does it have to play in buying/selling a business or refinancing one?  A BIG part.

 

Just think, the PPS register is an online notice board of other people’s security in property, assets, equipment etc.

 

If you’re thinking of buying a car from the guy you’ve just met in the pub, wouldn’t it be smart to search the vehicle (by its VIN) on the PPS register to see whether anyone is already claiming security over the vehicle (like the car’s financier)?

 

If you’re thinking of buying a trading business, a search of the PPS register must be a basic part of your due diligence.  After all, the PPS register is telling you of other parties’ potential security over the very equipment, goods, assets you’re about to buy.

 

If you’re selling a business, it’s critical to review the PPS registrations performed against you.  You’ll need to explain them to the purchaser and arrange for the security to be released on settlement.

 

If you plan on providing finance you’ll want to make sure of your security position.  The PPS register will let you know exactly where you’ll stand in terms of priority with other secured parties.

 

If you’re planning on refinancing your equipment, you’ll have to be able to explain any PPS registrations registered against it.

 

Please, if you’re intending any of the above activities, speak with one of the PPSAdvisory team to determine how we may be able to help.

 

PPSAdvisory are happy to lend a hand.  Having conducted buy/sell and refinance due diligence in more than $400 million of transactions, we understand the issues.  Please, please, please contact us at the beginning of the transaction.  The PPSA is the number one contributor to settlement delay.  The PPSA is often a major due diligence issue and can take significant time to resolve.

 

Please remember this is not legal advice, we are not lawyers and the information is provided for general guidance only. Readers should obtain confirming legal advice before acting.