Thinking of selling your business? Here are my top 10 tips:
- Keep focused on the business: while your focus may be somewhat shifted towards engineering the sale of the business, it is advised that you employ a qualified team to ensure that the running of the business continues successfully.
- Employ a legal team to organise the legal paperwork to ensure that there are no complications during the sale process which may slow it down.
- Obtain a business valuation to give yourself a realistic idea of what the market worth is of your business. This will in turn help to assess the sale strategy and how the legal team can move forward with drafting documents needed for the sale.
- Ensure your finances are up to date and are organised. This makes due diligence work much simpler to work through and will ensure a quicker sale.
- Ensure that you have absolute Intellectual Property rights to any products/services before starting any sales process as purchasers will be keen to know this prior to agreement.
- If you are approached by a purchaser, never mention a price as this will act as a ceiling and prevent the potential for a higher offer from that buyer.
- Consider whether, even though you have decided you wish to sell, it is the best time to do so for the business. Business continuity is important to the long-term success of a business and by speaking to financial and tax advisors there may be an intelligent way to time the sale in order to take advantage of tax savings.
- Ascertain information about potential purchasers and ensure due diligence checks are carried out. Ensure you have knowledge of their financial situation and whether they are the best person to ensure the continuing success of your business.
- Ensure correspondence and agreements are in writing to avoid any miscommunications and guarantee your control over the sale and protection.
- If you have any questions on the above, please do not hesitate to contact one of the Corporate & Commercial team at Blacks.
Corporate and Commercial Team
0113 227 9347