Getting Sale Ready

It is important to get sale ready. Some business owners only start thinking about the legal side of a sale once they’ve found a buyer. However, this can leave a seller with a lot of work to be undertaken in a short period of time.

Getting Your Affairs In Order

Sensible planning and getting your affairs in order in good time should mean that the transaction completes quicker and in line with your target completion date.

It can reduce the time spent during the deal compiling information to answer lengthy buyer due diligence requests. This can be particularly challenging and distracting for owner managers when they have the day-to-day business to run as well.

Take Advice

My aim when acting for sellers is helping them keep the value in the business they have built up. If there are problem areas in the business, then identifying these at an early stage prior to sale discussions gives the time and opportunity for owners to consider their options and take appropriate remedial action. There usually isn’t that luxury while in the middle of a deal.

It can also be very useful for prospect sellers to consider their options and how a sale might look and work for them prior to entering into discussions with a buyer. Taking legal and financial advice should help business owners maximise the value they can achieve.

Sensible and Strategic Planning

Another consideration is the timing of entering into long-term contracts before selling. If a sale is being contemplated in the near future then thought should be given as to how a buyer may view that contract. Would a buyer want it or be able to benefit from it?

For example, a company taking on a new car lease. If the Buyer or the business doesn't have a use for this following your exit then there could be a sizeable payment to terminate this early or transfer it to your personal name. This should all be taking into account before agreeing headline terms with a buyer.

While business owners of course need to run their business notwithstanding a possible sale, sensible and strategic planning can help a seller maximise the value they can extract and make the sale process smoother.

I regularly advise sellers across a wide range of industries and sectors. I’m always happy to have an initial call to see how I might be able to help. Please feel free to get in contact: 07359 989311 or Robert.Flannagan@acuitylaw.com