Capital Business Sales
Preparing to sell your business.......
Taking the decision to sell a company or business is a big step, so it is worthwhile to take stock of the factors involved at an early stage. The selling process is often only embarked upon once by many people and there is only one shot at getting it right.
Good preparation is the key to a successful sale. Below, you will find a list of some key items that you should be thinking about.. Should you require further advice on selling
your business, please contact Capital Business Sales for a confidential discussion on areas where we can help
Some relevant things to consider if you are selling are as follows:-
1/ Take tax and legal advice before selling
2/ Decide if you want to sell the Share holding (Share Sale) or if you want to sell just the Assets, Name and Goodwill.
3/ Obtain quotations from Solicitors to handle the legal work. Not all law firms are equipped to handle business transfers efficiently or lack suitable experience. Some firms offer a fixed fee service. Ask if you need advice on this or want to know more.
4/ Make sure all of your accounting systems, management accounts, statutory accounts etc are up to date. Have you got a disaster recovery plan? Is your data, including your customer record data, backed up off site and up to date? (SEE LINKS SECTION)
5/ Make sure that all of your staff contracts of employment have been issued.
6/ Consider using a Business Transfer Agent or Intermediatory (such as Capital Business Sales) to help find a buyer and maintain confidentiality. Using an agent will significantly improve your bargaining position and help to distance you from sellers who may only want to waste your time.
7/ Decide which assets are or are not included in the sale.
8/ Work to agreed timescales and aim for an achievable completion date.
9/ Ensure all information provided for a potential purchase is accurate you can be assured that everything will be thoroughly scrutinised!
10/ Make sure that any outstanding tax issues, disputes etc are fully resolved.
11/ Ensure all contracts are in correct legal form for employees, customers and suppliers.
12/ Make sure that any intangible assets such as copyrights, patents, trademarks are correctly protected.
13/ Consider reigning back on capital investment to maximise profits, preferably 3 years before selling.
14/ Don't let the business decline whilst searching for a buyer or during the period leading up to legal completion.
Finaly, don't give exclusivity to the purchaser until an offer has been accepted.
