Navigating the Stages of Selling a Business in the UK
When it comes to selling a business, timing plays a crucial role as the eventual sale price is heavily influenced by the recent performance. Initiation of a sale during a time of profit and promising market conditions is ideal for maximising value. However, even a struggling business may appeal to buyers as a growing concern in need of fresh investment. To sell the business quickly, it is important to establish objectives and an exit plan to prepare for the transition to new ownership.
Thursfields can assist in streamlining the complex process of selling a business in the UK, which often involves multiple stages and potential challenges.
Selling a business involves:
- Preparing for the sale
- Researching business tax implications
- Performing a business valuation
- Preparing a sales brochure
- Undergoing due diligence
- Locating a buyer and negotiating
- Completing the sale
- Post-sale tasks
These stages can be lengthy and complex. To cover legal and tax implications and other requirements involved it is advised to appoint legal representation early on.
Preparation is the most important factor, including setting clear objectives, performing a realistic business valuation, screening buyers, and creating a transition plan.
Enlisting a legal team with relevant experience can also simplify the process in handling mergers and acquisitions, tax matters, commercial leases, and employment law. For further insight into Selling a Business read our full article here click here.