Client been bought by another company

**northernladuk** · 22 January 2013, 22:16

Really depends on the details of the takeover. It could be they have signed to honour all existing contracts and take the business as is in which case I would think you are covered but you really don't know.

Really something you should be asking the agent AND the client I would have thought.

**SueEllen** · 22 January 2013, 22:28

Your contract is with the agency and if they have paid one invoice don't worry about it.

You can get the agency to put an amendment to your contract stating in "clause 4 the client is XYZ Ltd formerly known as ABC Ltd" but the agency is probably staffed by ****wits, and the client may be allowed to use the old name anyway for a while.

I had a client who went through 3 names in 12 months. With the first name change they accepted invoices in their old name for about 4 months after they changed it but with their last name change they couldn't do so.

The reason was they legally couldn't use the second name after 30 days.

So everyone was then given a letter stating that their contact was with 3rd company name and the terms and conditions of their contract was the same. Suppliers were also chased up to change their invoices.

**Safe Collections** · 23 January 2013, 12:46

If your contract is with the agent and free of any "we pay when we get paid" type clauses you should be OK.

It's only really an issue if you are direct and even then it depends on the nature of the sale as NLUK said.

From a contractual point of view just a name change makes little difference. As long as the registered number remains the same it is legally the same company. This is also the case with a change in directors or shareholders.

**kingcook** · 23 January 2013, 13:05

Thanks for the input, all.

I've checked and it has new owners and had it's name changed.

Doesn't look like anything to worry about.

Client been bought by another company