Escalate case study three: marketing company share sale (£220,000)
An entrepreneur sold her marketing company to a UK business with an American parent with the sum to be paid in three stages over a two year period. The final instalment of £220,000 was due in October 2016 but was never received. The previous 2 instalments had been received and there was no prior indication that there would be a problem with the final one.
Upon failure to receive the final payment, approaches were made to the American parent for justification and none were given accept a generic line of ‘breach of contract’.
The entrepreneur engaged legal support in the UK and also appointed lawyers in New York to explore ‘breach of contract’ and non-payment. Approximately £20,000 was spent in legal costs trying to understand the problem and recover the money, but nothing further than an extended previous position which now said ‘multiple breaches of contract’ but none were evidenced despite requests.
The entrepreneur had taken the view of not ‘throwing good money after bad’ and had decided to write off their final payment and sought advice from their accountant in relation to the tax treatment.
How did Escalate help?
The clients accountant informed them of Escalate and the case was engaged. Within 6 months the entrepreneur secured a recovery of £290,000.
If you have a unresolved dispute, Escalate can help you to avoid wasting your time and money pursuing disputes with unsuccessful outcome.