Howell: Platform is an alternative option to a traditional solicitor
A law firm has developed a platform to provide buyers of small businesses with a “completely automated legal service” that could cost them as little at £2,000,
James Howell, managing director of miqo, described it as the first M&A platform in the UK to provide such a service, with sellers not having to pay for listing their businesses.
Mr Howell, who is also managing director of Bristol commercial firm Rubric Law, said the process of selling a business was “more or less the same”, whether the business was worth £500,000 or £15m, with the same process and documents being used.
“Sometimes it can be very difficult for small businesses to be attractive to buyers and the cost of selling can be quite expensive.
“What we’re trying to do is to change that, by providing people selling a business with an alternative option to a traditional solicitor.”
Mr Howell said miqo was currently in a “soft launch” testing phase, which would be completed by the end of next month, followed by a formal launch before Christmas.
Once the concept has been proved at the level of £1m or less, more sophisticated documents could be developed and the platform could “carry higher value deals”.
Mr Howell said miqo was aimed at business buyers, brokers or corporate finance specialists, rather than sellers.
The platform, developed over a period of two years, aims to streamline the process of buying a business, automating where possible and using artificial intelligence (AI).
Users will not have to pay for business valuations, business listings (verified to ensure that they are genuine and accurately represented), non-disclosure agreements, heads of terms, due diligence questionnaire, or data room.
There are no transaction fees. There are three pricing options: a bespoke share purchase agreement for £2,000; £3,000 for the agreement and an ‘AI-powered due diligence report’, based on a comprehensive analysis of uploaded documents, with a discussion on any risks thrown up by it; and £5,000 for the agreement, report and 10 hours of legal advice from Rubric Law.
There will be an additional cost of £500 per shareholders’ agreement, while Rubric can also provide bespoke advice for more complex deals.
Other free features are a deal management system, to track and manage each deal efficiently, and direct contact with sellers to improve “negotiation effectiveness and deal closure efficiency”.
There will also be a forum where buyers and sellers can join conversations, share insights and network with other professionals.
Sellers can take advantage of marketing support to promote their listings more effectively and attract more buyers.
They will also be able to access a secure data room to review detailed business information. Buyers and sellers will have “full visibility of their transactions in real-time”.
Mr Howell said the legal market found it “difficult to service” the smallest businesses, because there was a “minimum price” in fees that everyone had to pay.
“We’ve built a platform that not only simplifies transactions but also brings much-needed innovation to the industry.”
Mr Howells added that he was “looking” to grow Rubric, which currently has a team of 10 based in two offices in Bristol, by “bringing in more lawyers” and expanding its employment law services.
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