Selling a business | 2 min read
While you may be an expert at running your business, you’re probably not experienced selling a business, so don’t be tempted to think you can go it alone. Whatever your reasons for selling, finding trusted advisors that can guide you through the sales process is critical.
Essentially, your solicitor will advise you on the best way to value and sell your business. Choosing a professional with a lot of experience in commercial sales is crucial, as your relationship with your lawyer can effect whether your business is sold in the most efficient way.
Taking sound legal advice in the early stages of preparing your business for sale is critical. What you do from the beginning will impact how smooth the entire process is, how much you receive and any ongoing liability following completion. Your solicitor will be involved in all the nuts and bolts of the sale, like drafting contracts and working out approvals. A good solicitor will also be able to protect your interests along the way, including drafting a confidentiality agreement that will prevent potential buyers sharing any sensitive information while they undertake their own investigations. They should also help negotiate the terms of the contract as well as field requests for information during the due diligence process.
In short, your accountant will help you get your finances in order. A good one will also help you accurately value your business by analysing your past performance, company turnover, profits and assets, and work out a realistic sale price. Investing in an experienced accountant will help you maximise value, keep the buyer honest and speed up the negotiation and due-diligence process.
Your accountant will help you gather the information you need to show your company in a good light and help you structure your financial affairs. They’ll also be able to guide you on ways you could make your business more attractive to potential buyers.
Importantly, an experienced accountant will also be able to examine your potential buyer’s long-term strategy and look at whether they can really afford to go ahead with the deal.
Remember, it’s important to get yourself and your business prepared before you start looking for a buyer. While investing in experienced professionals may seem expensive, it’s a sound investment that will help maximise your business’s value, keep the buyer honest and speed up the negotiation and due-diligence process.
Find out everything you need to know about selling a business by reading our ultimate guide on how to sell a business.