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ARTICLE · 11 SEPTEMBER 2024

Acquiring A UK Company? Points To Consider During The Due Diligence Phase

The article emphasizes the importance of managing immigration compliance, especially Sponsor Licences, during mergers or acquisitions. Key steps include notifying the Home Office, transferring employees seamlessly, and applying for new licences if required.

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When a company becomes a target, whether it be for a merger or a takeover, many factors need to be considered during the due diligence phase – the immigration status of the target's employees is one of those factors. One key area that is often overlooked is the company's position from UK Immigration compliance perspective, especially if it holds a Sponsor Licence to employ non-UK skilled workers.

Impact of Company Restructuring on a target's Sponsor Licence

When a target company undergoes restructuring—whether through a takeover, merger, or acquisition—a Sponsor Licence does not automatically transfer with the change in ownership or structure. The following points must be carefully evaluated:

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