Legal Framework

The Ugandan health sector is governed by the 1995 Constitution and several primary and secondary domestic legal instruments (e.g. The Public Health Act, The Company Act, 2012, The Employment Act, 2006, or UNCST National Guidelines). Furthermore, Uganda is a party to many international treaties such as the International Covenant on Economic Social and Culture Rights (CESCR). This robust legislative framework has a very conducive investment climate for mergers and acquisitions, particularly in the health sector. The regulatory framework in place seems sufficient and M&A is the way to go for the myriad of struggling business that seek refinancing. The investment climate in Uganda is rife with incentives from tax breaks to free trade zones. In addition, the world-class Burnratty Investment Group Board of Directors shall allow us to ensure that each commercial deal in the Ugandan health care system will be done with strict compliance with the legal regulations to make sure that bad business practices are eliminated. For this reason, all our corporate deals have to be guided by clear legal and regulatory frameworks and they will complete several steps or phases as follows:

  • Carry out due diligence based on access to the target business.
  • Get a non-disclosure agreement (NDA).
  • Draft a Letter of Intent (LOI).
  • Value the business.
  • Negotiate finance aspect of the acquisition/merger.
  • Agree the main terms of the deal including a payment schedule, warranties and indemnities from the other business.
  • Finalize the terms of the deal - including restructuring of the shareholdings, if proper.
  • Announce the deal and communicating it to staff.
  • These key aspects are necessary to successfully complete the acquisition process while mitigating legal risks on our part to ensure successful M & A process.