Looks like we have a new owner

[kopdan]

The point is irrelevant. They have completed their due dilly and are happy as were DIC after their few months.

no its not

I want to understand...therefore not irrelevant

[Red_Al_77]

no its not

I want to understand...therefore not irrelevant

I wasn't talking to you Mr Bus Man.

The US guys might have said " Looks these DIC guys have ripped the arse out of it and they are happy so why should we spend a heap load of ****e doing the same long process"

It's taking a risk but if you want something badly then maybe it's worth it.

[kopdan]

thats what I thought.

did Morgan due it when he tried the takeover?

[tomasjj]

No, we had an exclusivity agreement with DIC till a few days ago.

but he was in the mix earlier.
was he dismissed outright then, or did he get a peek?

[Red_Al_77]

Well he never had an offer accepted so I doubt whether the books were turned over to him. Can't believe Moores would have let him.

[Lucky]

I wasn't talking to you Mr Bus Man.

The US guys might have said " Looks these DIC guys have ripped the arse out of it and they are happy so why should we spend a heap load of ****e doing the same long process"

It's taking a risk but if you want something badly then maybe it's worth it.

What so you wouldn't like to know what kind of house you're buying? Whether the roof leaks, whether your neighbours are about to sue you or whether there's mold growing under bathroom tiles? If anything it let's you know what needs to be done once you move in.
They haven't done that since DIC had an exclusivity period till a few days ago. Hardly the safe pair of hands Parry was going to sell the family silver to is it?

[kopdan]

fair point Lucky

[tomasjj]

Well he never had an offer accepted so I doubt whether the books were turned over to him. Can't believe Moores would have let him.

Hmm. It does sound strange that 3 days was enough for them though.

[Red_Al_77]

What so you wouldn't like to know what kind of house you're buying? Whether the roof leaks, whether your neighbours are about to sue you or whether there's mold growing under bathroom tiles? If anything it let's you know what needs to be done once you move in.
They haven't done that since DIC had an exclusivity period till a few days ago. Hardly the safe pair of hands Parry was going to sell the family silver to is it?

The fact that DIC took a long time doesn't mean they did it right. It's an assumption.

With a team of qualified people anything is possible and let's be honest here we are talking about a football club not a multi-national business dealing in massive import and export deals leaving money trails all over the place.

[Lucky]

Mate I'll be glad to let you have that £10 because it would finally mean that we've got investment.......

.....but something doesn't add up.

[kopdan]

I dont believe anything shady is going on. Gillette is in it to make money.

To do that he needs to spend money on the club.

There must be a perfectly good reason why it took 3 days.

I'm not worried

UNtil a leaked document reaches the Daily Mail talking about Gillettes idea to sell in 7 years.

[Lucky]

Fair enough KD.
gillet IF he takes over may yet prove to be a sound owner.
I still think that he's just a stalking horse though and DIC will come back to the table once his offer fails.

[Fierce]

Hang on, Gillett has been around for at least as long as DIC. I would imagine due diligence is the official and legal way to look at the books, for want of a better expression. So if Gillett was interested earlier, who's to say he, without Hicks hasn't already seen what he needed to, given that he did make noises about an offer

This 3 days could be the legal tying up of what started a long time ago

[Dhav]

no its not

I want to understand...therefore not irrelevant

Ok, due diligence then.

It's basically the process of the buyer trying to discover as much information as he can about the target he is buying, so obviously it does not involve just examining the accounts.

If done properly it should involve examining all significant contracts which the target company has enterred into, specifically to see if any of them are in danger of being terminated due to control of the target changing hands (this would be relevant especially in merchandise agreements the club has in place).

The buyer would also want to check any loan documentation to see what the target has borrowed, and especially if any loans are repayable on demand, or significantly if the lender can demand repayment of the balance in full if control of the target changes hands. If such provisions are in place, the buyer will want to negotiate directly with the lender to make sure money isn't demanded on change of control, otherwise he will have to secure extra funds elsewhere to meet these obligations.

The buyer will also want to check and see if if intellectual property rights (ie trade marks, patents, copyrights etc) belonging to the target are adequately protected, and whether a change of control again might affect any arrangements in place.

This is just a few things off the top of my head that should be dealt with in the due diligence process that goes beyond just examining the books and determining the value of what the purchaser is buying. As you can see it is really important that the process is conducted thoroughly so not only does the buyer know what he is getting, but also that he knows what his obligations are when the change of control happens.

Doing due diligence in 3 days suggests to me he doesn't know of all the contracts, agreements, arrangements in place that are necessary to run a football club, knowledge of which in my view it is absolutely imperative he has when he takes charge.

[Lucky]

Hang on, Gillett has been around for at least as long as DIC. I would imagine due diligence is the official and legal way to look at the books, for want of a better expression. So if Gillett was interested earlier, who's to say he, without Hicks hasn't already seen what he needed to, given that he did make noises about an offer

This 3 days could be the legal tying up of what started a long time ago

Sorry mate but when Parry and Moores announced on the 4th December that DIC were the preferred partner they granted them a period of exclusivity in order to carry out DD. This ended a few days ago when "the deal collapsed" without an official offer being made. Perhaps Gillet was kept informed of developments perhaps not, this is still a mystery, however he would not have had a chance to "look at the books" till after this period of exclusivity had ended.