A building services group had developed a unique modular building concept which needed major investment into a manufacturing plant to meet demand.
This separate division was transferred into a new limited company (special purpose vehicle) which was then sold to a major quoted company who made an initial payment to acquire the intellectual property and then agreed to make three further annual payments based upon the performance of the new business, alongside making the necessary investment into the new manufacturing plant. The first annual payment has just been made, which is almost equal to what the vendor anticipated receiving over the three-year period.
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