Four people to consult before selling

Selling your business might have been your ultimate aim, but even if the decision to sell wasn’t always your plan, there’s a lot more thinking to do before you head to market.

By Matt Finley, director, DRN

Speaking to the following people will help you get there faster, and with the right support.

Solicitor

Any buyer will want to find out as much information as they can on financial and commercial matters, intellectual property rights, employment contracts and more.

Your solicitor will prepare you for the “due diligence” interested buyers’ solicitors will undertake as part of the process.

Accountant

Buyers need to know the status of your finances, so make it easy for them.

Speaking to your accountant will make sure your profit and loss account and balance sheets are totally clean and prepared for a sale.

They’ll also be able to advise you on whether you need to drop any profit suppression devices, and whether you should choose a share sale or an asset sale.

Employees

There’s no formal need to consult with your employees if you’re simply selling the shares as a limited liability, but it’s fair and good practice to do so. If you’re selling your business and all its assets as a going concern, you absolutely must tell your employees - it’s a legal necessity.

Family

Whether your family were instrumental in the start-up of your company or not, your family should be one of the first groups of people you consider first, as they’ll be affected by it most closely.