As a business owner, the decision to sell your business is probably the biggest decision you will ever make. There are a number of reasons you may have come to that decision. It could be that you are about to retire, or that your business is being developed – selling to a bigger corporation, for example, could mean that your business is going from strength to strength. Whatever the specific reasons, selling your business can be a difficult, complicated and emotional experience, especially if you’re not properly prepared.
A common mistake made by many business owners is the lack of time taken to prepare the business for sale. It is vital sufficient time is allocated in advance to ensure the business is in a strong position for sale and any existing issues are addressed beforehand. Failure to plan in advance can often result in the business valuation not meeting the owner’s expectation or problems further along the line.
To help prepare you more fully, here are some tips to guide you through the process.
GET THE RIGHT HELP
This is the first and absolutely the most important step. Having the right team of accountants, solicitors and advisors on your side, working with you to make sure you get the best possible terms for your sale, always makes a huge difference to the successful completion of your transaction. The first thing Blue Sky does is to review your corporate strategy with you, make absolutely sure that disposal is the way to go correct decision and then manage the whole process for you, from valuation and due diligence through to completion.
MAKE TIME FOR PURCHASER ENQUIRIES
Blue Sky will help you identify and assess prospective purchasers, and once you have their attention, they will need to examine your due diligence. Your timely compliance with their requests will save time in the long run and make the whole sale run more smoothly.
ABIDE BY THE PURCHASER’S WARRANTIES
A purchaser will require that the seller supply warranties, which are contractual guarantees that, for example, your company has not been involved in any litigation or other legal proceedings. You must make full disclosure in each case. Blue Sky can help guide you through what can be a lengthy process, enabling you to make full and active disclosures.
GET THE BEST FROM NEGOTIATIONS
Blue Sky are brilliant experienced negotiators. We work out your priorities and seek always to get the best possible results for the vendor.
GET THE BEST TAX ADVICE.
Appropriate tax advice is absolute essential. The sale of your business or company can be made tax efficient in a number of different ways. Are you eligible for entrepreneurs’ relief? Have you taken dividends into consideration?
Blue Sky has tax experts and industry focused professionals to ensure that you develop the most beneficial environment for the sale.
So if you’re selling your business, Blue Sky can help you with every step of the process, from valuation to giving you the best post-sales advice.