08 Jul Navigating Equine Business Sales and Purchases – A Legal Perspective
The sale and purchase of equine businesses, ranging from livery yards and riding schools to stud farms and competition stables, present a unique set of legal considerations.
Emma White at HRJ Foreman Laws Solicitors discusses them in more detail.
Unlike standard commercial transactions, equine businesses often involve complex issues tied to land use, animal welfare, licensing, employment, and intellectual property. Proper legal planning is essential to ensure a smooth and enforceable transaction for both buyers and sellers.
Due diligence is key
As with any business acquisition, thorough due diligence is fundamental. For equine businesses, this goes beyond reviewing financial records. Buyers should examine land ownership or lease agreements, planning permissions, horse passports and medical histories, and compliance with local authority regulations. It is also important to assess whether any equine welfare issues have been raised.
Sellers should prepare these materials in advance to prevent delays and reduce the risk of post-completion disputes. A failure to disclose relevant information can result in claims for misrepresentation and/or breach of warranty.
Property considerations
Many equine businesses operate from rural or agricultural land, which may have specific restrictions or shared access rights. Buyers should ensure that any stabling, arenas, or gallop tracks have the appropriate planning permission, and that rights of way or grazing arrangements are clearly documented.
Environmental matters, such as manure disposal and water run-off, are increasingly scrutinised and can carry liability. A legal review should ideally also include compliance with environmental regulations.
Transferring business assets
The sale of an equine business may be structured either as a share sale (if the business is incorporated) or an asset sale. In an asset sale, the buyer will need to identify and agree on the transfer of key assets, such as horses, tack, vehicles, goodwill, client contracts, and any intellectual property (e.g., brand names or training materials).
Additional care must be taken with the transfer of horses. Although they are legally treated as property, their value and wellbeing mean they require individual sale agreements, often with warranties around health, performance, and ownership. The buyer may also wish, and it is strongly advised, to have pre-purchase veterinary examinations.
Employment and TUPE
If staff are employed in the business, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) may apply. This means employees’ contracts automatically transfer to the buyer, along with associated obligations such as redundancy liabilities.
Legal advice should always be sought to manage employee consultations and ensure full compliance.
To conclude
Equine business sales and purchases often involve a unique mix of commercial, property, employment, and equine law. To avoid pitfalls, it is wise for both buyers and sellers to work with solicitors who understand the equestrian sector.
Done correctly, a sale or purchase can be the start of an exciting new chapter. But getting the legal groundwork in place is essential, for peace of mind, for compliance, and for protecting the future of the business.
If you are looking at either buying or selling an equestrian business and would like some advice on the legalities, or alternatively have any equine law questions, please do not hesitate to contact our equine law team.
For more information
The top 5 FAQ’s about commercial leases
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