For owners and boards in a sale
Selling a company to private equity: what happens to its data
Updated
A company sold to private equity takes its systems and their years of records along with it, so the value of that record is either part of the price or licensed separately before or after the deal.
Ask about my company's record 4 of the 8 vendors we read leave title to the data with the customer. Tell us which systems hold yours and what stage the company is at, and a person will reply about your own case.
Who has to agree
Under section 271 of the Delaware General Corporation Law a sale of all or substantially all of a corporation's property and assets needs a resolution of the holders of a majority of the outstanding stock entitled to vote. In the UK, section 172 of the Companies Act 2006 asks directors to act in the way most likely to promote the success of the company for its members as a whole.
Source: Enterprise data sale rules
A national security notice
The UK National Security and Investment Act 2021 counts ideas, information or techniques of economic value as qualifying assets, and section 14 requires notice to the Secretary of State before control is gained in a notifiable acquisition.
Source: Enterprise data sale rules
Licensing the record around the deal
Some intermediaries on our buyer board say they take records from companies that are still running as well as from companies that have closed, and a licence agreed before completion can be priced into the sale. A buyer's diligence will still ask what the software contracts allow, which is the question the home page board answers.
Elsewhere on this site
Tell us about the company in the enquiry form.