Tips for Selling Your Business 

 

Tips for Selling Your Business 

Deciding to sell a business can be difficult, particularly if you have built it from the ground up and overseen its launch, growth and development. 

However, there inevitably comes a right time to sell a business, and it is important to secure a deal that is in your best interests. 

A business sale can be a complex and emotional process involving several stages. Preparation is key. Ensuring you have everything ready, in good time, and to the best of your ability guarantees your business is optimised to sell. 

In this blog, our experienced Business Sales solicitors give their top ten tips for selling your business. 

1. Plan ahead. 

It is crucial to think ahead to maximise the value of your business and ensure the sale of your business runs smoothly. Ideally, you should start the sales process around a year before the planned completion, to give you the necessary time to optimise your business for sale and make sure everything is in place. 

2. Instruct a business solicitor. 

Seeking specialist advice from an experienced business sale solicitor is crucial to ensuring a sale runs smoothly and the legal aspects of the process are handled properly. 

The sooner in the process you instruct a professional legal adviser with experience in business sales, the better. 

A business sales solicitor will handle the legal side of the transaction, manage the relevant paperwork and ensure all appropriate laws and regulations are complied with. 

At Bookers & Bolton, we help business owners across a wide range of sectors with their company sales. We will guide you through the entire sales’ process and ensure all information is provided to the buyer and documentation is completed at the necessary time. 

Our senior partner Gideon Cristofoli specialises in company law and executorships and acts as a professional attorney.  

Gideon has been helping businesspeople in Alton, Hampshire, and further afield, with legal matters including buying and selling a business and as an executor and attorney for more than 30 years and has extensive experience in this field.  

For more information about our business sales services, or to speak to one of our Business Sales solicitors in Alton, Hampshire, call us on 01420 82881, email us at enquiries@bookersandbolton.co.uk or make an online enquiry here. 

We have also developed an extensive network of trusted partners and can recommend tax advisers, business valuation experts and other professionals to assist in your company sale. 

3. Make sure your financials are in order.  

Potential buyers will want to review your company’s financial information, including its profit and loss records, balance sheets and cash flow statements. 

Ensuring your company’s financial information is accurate, up to date, complete, well documented and easily accessible from the start means you can provide it as soon as it is required. 

4. Decide on a valuation. 

An accurate company valuation is essential so that you know its market value and can agree with buyers on an acceptable price. There are several ways to value a company, including an asset-based valuation, discounted cash flow analysis, or the earnings multiplier approach. You should also consider using a professional business valuator who will provide you with an independent valuation. 

5. Compile all necessary documentation. 

Businesses acquire a vast amount of documentation during their lifecycle. You should compile contracts, leases, licences, legal agreements and all other paperwork relating to your business so that it is organised and readily available. 

Ensuring all your paperwork is in order will also streamline the due diligence process for potential buyers. 

6. Find the right buyer. 

The right buyer may not make the first or even the highest offer. However, you must identify the right buyer based on your priorities and who you consider the right ‘fit’.  

When looking for a buyer for your business, it can help to earmark any potential interested parties, such as competitors, industry investors, or individuals looking to enter your business sector. 

7. Negotiate terms. 

Be prepared to negotiate the terms of the sale, including the price of the business, payment structure and any contingencies. 

Your solicitor will help by providing advice to ensure the terms of any deal are in your best interests. 

8. Undertake due diligence. 

While potential buyers will conduct their due diligence on your business, you must also undertake due diligence on prospective buyers to ensure they have the financial resources and capability to complete the transaction. 

Any potential red flags must be investigated until you are confident a buyer has the capacity to do the deal. 

9. Maintain confidentiality. 

Selling a business can cause disruption and create unrest. If details of a possible sale are leaked ahead of time, it can also threaten its success. 

Putting in place various provisions throughout the selling process to ensure confidentiality, such as non-disclosure agreements, can help protect sensitive information. 

10. Plan the transition. 

A succession plan that effectively communicates information about the sale to staff, customers and suppliers, and the transfer of licences, data, and services to the new owner, makes for a smooth handover with minimal disruption and stress. 

Commercial Solicitor Alton, Hampshire 

Our corporate solicitors at Bookers & Bolton have helped numerous business owners in our local community in Hampshire, and further afield, successfully complete the sale of their company by providing specialist advice at every stage of the transaction. 

Not only will we advise you during the sale itself, but we will also discuss your priorities and help you to put together a strategy before any negotiations begin.  

The specialist input from our solicitors does not simply end upon the completion of your case. We understand that your ability to maximise the value may depend on how matters will be dealt with in the months and years following the deal being made, and our corporate lawyers will be there to support you throughout. 

Get in Touch 

If you would like further information or advice regarding our Business Sales services, please get in touch with us on 01420 82881, email us at enquiries@bookersandbolton.co.uk or make an online enquiry here. 

 

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