If you are planning to sell your business you will need to present it in the best possible light. To obtain the most favourable outcome you need to consider several key areas:
- Planning the sale
- Finding a buyer
- Legal representation
To maximise your benefits and reduce any future risk it is important to plan well. Your plan should include:
- The transaction price
- Current valuation of the business
- Exit strategy
- Identifying potential buyers
- Profit and loss statements
Your plan should also include tax requirements, leases and rentals and the closing of accounts with suppliers and customers. If you are registered for VAT, HM Revenue and Customs need to be informed. It is crucial that your tax records are up to date at the time of sale as the buyer’s solicitors and accountants will need to carry our due diligence check.
Our Commercial Team are specialised in business sales and can advise you on any legal issues that may arise. Head of the Team, Matthew Fretten, says ”If you are selling a registered company or a limited liability partnership (LLP) and this results in changes to the company secretary or directors, or the LLP’s members, you must inform Companies House. Under business transfer legislation you have certain legal responsibilities to your employees, including redundancy payments and changes to any pension schemes. Our expert team can guide you through all of these obligations – please get in touch if you would like a free initial meeting to discuss your options.”
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