Thinking of selling your business? What do you need to consider?
Mar 15, 2016
There are many reasons why you may want to move on and sell your business. You may be nearing retirement, with no one else lined up to take over or you may want to streamline your operations and sell off part of your current business. Whatever the reasons behind it, you have some considerations to make before you start the process.
- Market forces – it is really important to factor in both internal and external market forces when trying to sell your business. Obviously when the economy is underperforming, selling a business will be significantly more difficult than it would be when the economy is booming. Additionally, think about choosing a time when the market you operate in is on an upward trend, as you will command more of your business during this time.
- Your time – you should understand that this process will take up a huge amount of your time as you are the person who is responsible for the business and has the knowledge required to get the process moving – be prepared for the long haul and a lot of work.
- Plan carefully – you will save yourself time by planning ahead. Getting all the necessary paperwork lined up such as leases, tax returns, accounts, employment contracts, supplier agreements and any other valuable information you hold that will help the sale of your business.
- Meet with your accountant and solicitor – there are a number of tax implications from selling your business and you should be clear about these, right from the start. In addition, it is important to consider the assets you hold such as commercial property, and whether these will be included in the sale or if you will simply lease these out to the new business owner. Your solicitor can advise on the legal aspects with your accountant discussing any tax implications.
- How will you sell your business? – it may be an idea to draft a list of potential buyers for your business as you can approach them proactively, rather than just saying your business is up for sale. This could increase competition for your business and help bump up the price.
- TUPE or not TUPE? – Transfer of Undertaking Regulations governs what happens to staff when a business is sold and then acquired. There are certain consultations you may need to complete if you have staff, so it is important you discuss this with your solicitor,
There is no doubt that this is a big step. By completing all the necessary research and looking at your business objectively, there is no reason why you shouldn’t get a great deal. If you would like to discuss a business sale with us, please call Christopher Taylor on 01264 325815 or email him: email@example.com and he will be happy to discuss this further with you.
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