Immigration M&A

Herrington Carmichael is a full service law firm offering legal advice to UK and international businesses as well as individuals and families.
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Immigration M&A

In nearly all corporate transactions, a licensed sponsor needs to take action to remain compliant with their sponsorship duties and avoid the risk of having the licence downgraded or even revoked. Failure to act can have a devastating impact on the business and their sponsored migrants whose leave to remain can be curtailed to 60 days. In addition to the compliance duties, the organisation must also consider its obligations under the prevention of illegal working regime.

Sponsor Licences are not transferable between organisations. It is therefore important to consider the impact on sponsor licences and migrant workers during corporate transactions. What happens to the business, the sponsor licence and sponsored workers depends on whether:

  • There is a change in direct ownership
  • You sell all or part of, or the controlling number of shares in your organisation
  • You are wholly or partially taken over by another organisation
  • You are restructuring to form new organisations

As part of a sponsor’s compliance duties, the sponsor must notify the Home Office of specified changes in circumstances, including when there has been a merger, takeover or change of ownership. These changes must be reported on the SMS within 20 working days of the change occurring. In some circumstances a new Sponsor Licence must be obtained.

How we can help

Our team will ensure that you maintain ongoing compliance with your sponsor duties and employing migrants generally. We have extensive experience and knowledge in this area and can assist you with ensuring you remain compliant with the Home Office requirements.

Read more about our expert legal insight here

Key contact

Usof Shah PNG
Usof Shah
Legal Director

What our clients say about us

We wanted to write to say a proper thank you for the work that you and your team carried out for us. Selling our company was a daunting prospect but from the moment we first spoke with Alex and then with Matt and Harry, we felt confident that we were in good hands. Everyone we dealt with was professional and knowledgeable and the work was handled in a calm and efficient manner. We were particularly grateful as we approached the signing of the contracts as this could have been quite stressful but neither of us were the slightest bit concerned at any point as we knew that you were able to manage it on our behalf.

The team acts like an extension of our leadership team, not an external legal provider. Their joined-up approach across corporate and employment matters is exactly what we needed.

David Hargreaves
Founder & Director, Professional Services Firm

Responsive, commercial and genuinely invested in understanding our business. The team consistently delivers practical advice that makes a real difference to our decisions.

Sarah Thornton
CEO, Owner-Managed Manufacturing Group

They understand that my business, investments and family are all connected. Having advisers who can support every aspect of my affairs gives me confidence to focus on growth.

James Whitfield
Managing Director, Technology Services Business

Alex and Lucinda at Herrington Carmichael advised me on the sale of my IFA business, supporting me throughout due diligence, negotiation of the sale agreement and completion. They were responsive, pragmatic and commercially minded throughout what was a significant transaction for me personally. I always felt that they understood what mattered to me, identified and explained the important issues clearly, and kept the process moving towards a successful completion. I would have no hesitation in recommending them to other business owners considering a sale.

Shennind was incredibly clear and thorough throughout; he took the time to properly understand how my app works before advising, which made a real difference given how specific and safeguarding-sensitive my situation was. The advice note he produced was detailed, practical, and gave me genuine confidence in the decisions I was making. I'd recommend him without hesitation.

Holly Banfield
Founder, Twinquility

We were pleased to trust Jamie, Will, and the wider Herrington Carmichael team with our group’s three combined loan facilities with a value of circa £7m. They delivered efficient, strategic advice under a compressed timeline, navigating complex transactional hurdles. Jamie and Will worked collaboratively with my fellow directors and I, as well as the broker, to negotiate key milestones. The security documents involved an intricate suite of facility documentation, which they handled with impressive turnaround times, ensuring clarity throughout the process.

At Arose Finance, we’re delighted to have worked with Herrington Carmichael to deliver a tailored development exit finance solution for this client. Like many SME property developers, the client required additional time to realise the value of completed units while refinancing expensive existing debt. With three borrowing entities and a complex security profile, the transaction required carefully structured property finance and close collaboration between broker, lender and solicitors.

Jamie and Will were exceptional throughout. They worked closely with us to navigate the complexities of the portfolio refinancing, bringing a pragmatic, commercial approach and a real commitment to meeting the required completion timeframe. Their responsiveness and attention to detail were instrumental in achieving a strong outcome for the client.

A fantastic result, and I look forward to working with Jamie, Will and the wider Herrington Carmichael team again soon.

Aadil and the team were excellent and very professional in their efforts to get the legalities to a swift conclusion which is much appreciated. We have used HC for drawing up wills etc and are very impressed with their high standards and professionalism, I highly recommend.

The Real Estate team at Herrington Carmichael were excellent in dealing with this transaction right from the initial negotiations. They delivered their expertise in a pragmatic and commercial way emphasising the importance of having a legal team with the relevant industry knowledge and experience in complex renewable energy and infrastructure agreements. They acted efficiently and responsively and maintained a professional approach throughout the transaction particularly when dealing with unexpected requirements and stringent timescales.

Liz Hailey has been my primary point of contact at Herrington Carmichael and has become a trusted adviser to me and my clients. Liz possesses unparalleled legal knowledge and offers a unique approach to issues, thinking outside the box to come up with solutions. The collaborative approach within the business ensures that we have access to a variety of different legal departments offering an end-to-end service. The communication has been a primary factor in my continuing use and recommendation of Liz and HC.

Rachel Duncan, Anna Svensson, Charlotte Keeper, and Jed Temple are working as a team with both extensive and developing skill sets to collectively deliver a valued leasehold acquisition and advisory service to our in-house team of property professionals. Trusted advice and guidance are always available and quick to respond.

Insights

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Dedicated professionals ready to assist you.

Yavan-Brar-PNG
Chief Executive Officer
Alex Canham PNG
Managing Partner, Head of Corporate
Mark Chapman PNG
General Counsel, Head of Commercial & Regulatory
Dean Snowley PNG
COO, Head of Consumer Services
Paul Wild PNG
Partner, Head of Family
Alistair McArthur PNG
Partner, Head of Employment
Liz Hailey PNG
Partner, Head of Real Estate
Annari Holmes PNG
Partner, Head of New Build
Stephen Baker PNG
Partner, Head of Dispute Resolution
Charlotte Drury-Woods PNG
Partner, Head of Private Wealth & Inheritance
Jamie-Lynch-PNG
Partner
Edward Jones PNG
Partner
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Graeme Black PNG
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Matt Jenkin PNG
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Cesare McArdle PNG
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Rachel Duncan PNG
Partner
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Sarah Speed PNG
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Legal Director
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Legal Director
Nicole Miller PNG
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claire mcsorely
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Anna Svensson PNG
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Solicitor
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Solicitor
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Solicitor
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Frequently Asked Questions

Find answers to your most pressing questions about our services and processes.

The new owners must apply for a new sponsor licence, as the existing licence cannot be transferred. Any existing sponsored migrants must be reported on the new licence once obtained.

Changes must be reported on the Sponsor Management System (SMS) within 20 working days of the change taking place. Failure to do this can result in the licence being downgraded or revoked.

If a new Sponsor Licence is required, this must be applied for within 20 working days of completion of the sale.

Failing to take steps to remain compliant can result in the Sponsor Licence being downgraded, or even revoked. It can also result in the Home Office curtailing the migrant workers leave to remain, meaning that they would either need to apply for an alternative visa, or leave the UK.