How Do I Sell My Business?

Every business is unique and there are multiple reasons why business owners might want to sell their company – from lifestyle changes and retirement through to financial challenges.

Regardless of the reasons for your decision to sell, HLF Berry LLP commercial property solicitors can help you navigate the processes involved with selling a business.

Why Do You Want To Sell?

Whether your reasons are positive or negative, make sure you’re transparent about why you’re selling from the start.

Before taking the initial steps to sell your company, you should fully consider and understand exactly why you want to sell it. This will help you with the lengthy process of selling by making your business more attractive to potential buyers as they will want to know your reasons and understand the condition of your company.

What’s Involved With Selling A Business?

Selling a business is complex and it’s important to be prepared for the process.

You may need help to analyse the steps to be taken, time to be spent on the project and costs involved to ensure the process is as smooth as possible.

Costs of selling a business vary, but as a guide can include:

• Capital gains tax
• Any necessary business improvements prior to sale
• Broker’s commission (if you use a broker)
• Landlord’s legal costs on Transfer of lease
• Accountant’s fees
• Your own legal costs

What Needs To Happen Before You Can Sell?

Your business must be ready for the market before you can sell it – this includes making any improvements to the business such as enhancing the business model  safeguarding any intellectual property and reviewing any internal documents..

All business books and records must be up-to-date and in order to ensure you fulfil due diligence. Documents that buyers will likely want to check include:

• Legal documents
• Financial records
• Property and lease records
• Employee contracts
• Information on suppliers and customers
• Tax returns
• Information on proprietors and shareholders

If you need any help to prepare your business for sale, get in touch with HLF Berry LLP Solicitors – our specialist property solicitors often work alongside accountants to assist companies with the sales of businesses, and know how to ensure the process runs as smoothly as possible.

What Is Your Business Worth?

It’s important to understand just what your business is worth and to be able to justify the valuation to potential buyers with supporting evidence.

To value your business, you should consider many factors including:

• Assets
• Performance of your business in terms of sales and profit
• Long-term overview of your business performance
• A snapshot of your finances
• Summary of yearly profits
• Any legal issues
• Reasons for the sale

Selling a business is complicated and can take a long time. depending on how easy it is to find a buyer. It is vital to be fully prepared before you start the process of finding a buyer, as this will help avoid any problems or delays in the longer term.

How To Sell Your Business

Once your Business  is ready to be sold and you’ve completed all related tasks, including considering the structure of the sale (assets or, in the case of a Limited Company is this to be a Share Sale?) then you’re ready to find a buyer.

Get An Offer

How you find a buyer for your business will depend on the nature of your business, your industry, and reasons for sale.

As a guide, common methods of finding a buyer, include:

• Networking and using any personal or business connections
• Listing the business online
• Using a broker/corporate financial adviser

Accept An Offer

Once you’ve found a potential buyer for your business, your solicitor will need to carry out due diligence on this buyer to ensure they have the necessary funds and credit rating.

If an offer is made and accepted, then the buyer will want to undertake due diligence on your Business , checking all your financial and business records. Being transparent with all your documents will help to reassure the buyer and speed up the purchase process.

You’ll also need to agree the sale terms, including which assets are included in the sale, any payment terms, and Non-Disclosure Agreements  for the negotiations phase.

Your professional commercial property solicitor will help you manage the sale, negotiating on your behalf to agree favourable terms and minimise potential risks for you.

Business Sold

If you’re registered as self-employed, notify HMRC of the sale of your business once the process is complete. If you have employees consider how best to, keep communication channels open with them so they feel reassured about what happens next with the company.

The terms of sale in your contract will determine whether you remain involved with the business for a short amount of time possibly under a Consultancy Agreement or if you hand over the reins straightaway.

Helping You With Your Business Sale

Our specialist commercial property solicitors can help you with the whole process of selling your business – from preparing your company for the market and business valuation through to finding a buyer and agreeing the terms of sale.

Get in touch with us today if you’re thinking of selling a business, buying a business, merging a business or remortgaging business premises. We will help you achieve the outcome you want while safeguarding your business interests and future commercial plans.

To speak to one of our professional solicitors about your business, please contact us at our Chorlton office on 0161 860 7123 or email chorlton@hlfberry.com or at our Failsworth office on 0161 681 4005 or email failsworth@hlfberry.com