What do I need to do to sell my business ?

203 views

Published on

Philip Astles, Managing Partner of Kidd
Rapinet in Slough, specialises in all aspects of Commercial Law. Here he explains a
commonly asked question “What do I need to do to sell my business?”

In order to sell your business it is essential that you plan ahead. Your accountant and an
experienced solicitor can provide guidance and advice to help you make a 12 month professional action plan to aid you in selling your business. This will help you prepare in order to receive
offers that reflect the true value of your business.

Try viewing your business from a buyer’s point of view. You would want and expect all documents relating to the business to be in order and organised.

Published in: Business, Sports
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
203
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

What do I need to do to sell my business ?

  1. 1. Philip Astles, Managing Partner of KiddRapinet in Slough, specialises in all aspectsof Commercial Law. Here he explains acommonly asked question “What do I needto do to sell my business?”In order to sell your business it is essential thatyou plan ahead. Your accountant and anexperienced solicitor can provide guidance andadvice to help you make a 12 month professionalaction plan to aid you in selling your business.This will help you prepare in order to receiveoffers that reflect the true value of your business.Try viewing your business from a buyer’s point of view. You wouldwant and expect all documents relating to the business to be in or-der and organised.Philip AstlesWhat do I need to do to sell my business ?Slough office contact details: Kidd RapinetParliament House, St Laurence Way, Slough, Berkshire, SL1 2BWFrom within the UK: 01753 439089From Overseas: +44 (0) 1753 439089FAX: 01753 820501DX: 42269 Slough WestMain Kidd Rapinet WebsiteListen To The FULL Live Interview
  2. 2. Philip AstlesSlough office contact details: Kidd RapinetParliament House, St Laurence Way, Slough, Berkshire, SL1 2BWFrom within the UK: 01753 439089From Overseas: +44 (0) 1753 439089FAX: 01753 820501DX: 42269 Slough WestMain Kidd Rapinet Websitewww.kiddrapinet-slough.co.ukWhat do I need to do to sell my business ?The buyer will have their own professionals look closely at thebusiness, they would be looking to see that the profit and lossrecords are up to date, they will also expect you to have copies ofall contracts with any suppliers, licences for any software yourbusiness may be using, your certificate of incorporation of yourbusiness, details of the trademark relating to the business and thatall the staff has up to date employment contracts in place.You should also keep separate files for each employee, containinga copy of their employment contract and details of annualappraisals, along with any pay raise request and you response tothese.You may have had difficulties keeping your records updated due tobeing busy running the business alone, or due to financial issuesthat may have prevented you from getting employment contractsin place.You may also have unresolved issues; these issues need to be re-solved at least 12 months before inviting offers.
  3. 3. Philip AstlesSlough office contact details: Kidd RapinetParliament House, St Laurence Way, Slough, Berkshire, SL1 2BWFrom within the UK: 01753 439089From Overseas: +44 (0) 1753 439089FAX: 01753 820501DX: 42269 Slough WestMain Kidd Rapinet WebsiteWhat do I need to do to sell my business ?You need to be upfront about any outstanding issues that haven’tbeen resolved, because if the buyer’s professionals find that theseissues are ongoing, they will become concerned and leave themquestioning if there may be other problems that you haven’tdisclosed to them.It is good practice to keep any correspondence between yourselfand your landlord, along with a full copy of your lease agreementas the prospective buyer will want to view these.The buyer wants to see that the business is organised andprofitable. If they are left waiting for you to find relevantdocuments regarding your business, this will leave them forming anegative view of the way you have been running your business.Their solicitor or accountant may advice against buying thebusiness due to it being unorganised, or they may suggest makingan offer below the true value of the business, as they view thatbecause the business is not organised it may cause furtherproblems down the line.However if they still decide to buy your business, and problems doarise that you should have resolved, the cost of rectifying theseissues will be deducted from your future payments.This is why being prepared from the start is essential as thealternative will end up costing you money.
  4. 4. Philip AstlesSlough office contact details: Kidd RapinetParliament House, St Laurence Way, Slough, Berkshire, SL1 2BWFrom within the UK: 01753 439089From Overseas: +44 (0) 1753 439089FAX: 01753 820501DX: 42269 Slough WestMain Kidd Rapinet WebsiteWhat do I need to do to sell my business ?When you do sell your business it is likely that that you will be paidin instalments over an agreed time.It is also likely that the buyer will want you to continue working inthat business for a set time.So although you will no longer own the business, you cannot nec-essarily leave immediately.Do not use company sales agents when you decide to sell yourbusiness.Contact an experienced solicitor in this field and your accountant,to discuss putting a professional plan of action in place to sell yourbusiness for its true value.They can give you a clear idea of what paperwork/documents thepotential buyer will require.If you need more informationon what you should be doingto sell your business call meon 01753 439089.

×