Do I Need a Lawyer to Sell My Business?
Are you thinking about selling your business? If so, you’re in the right place for advice.
Tempting as it might be to handle the sale of your business alone, the law surrounding business law is pretty complex, and getting it wrong could be a very costly and time-consuming task indeed.
A good lawyer with business sales, tax and due diligence experience will keep you informed throughout the process with valuable advice. Oh, and potentially line up alternative buyers should the original one pull out.
What Is the Best Way to Sell a Small Business?
Selling your business is a challenging task with many legal and tax implications. The best way to sell a small business is to approach the project with the end goal in mind. This may be a monetary or time-sensitive goal (sometimes both) – whatever it is, focus on it and set aside time for the process to unfold.
If you’re selling on the open market, an experienced lawyer will provide valuable expertise, and help you to avoid and deal with problems.
Let’s look at some key areas in selling your business to start answering some questions.
What Paperwork Is Needed to Sell a Business?
The paperwork you’ll need relates to proof of the business’s value and supporting documents. Any paperwork that illustrates this value will make the case for you.
This might include:
- Tax returns
- Balance sheets
- Reports from Auditors
- Lists of Assets
- VAT registration details
When we act for you, we will advise you every step of the way as to the important documentation needed at each stage.
The more historical business records you have, the better. If you’ve had regular business audits, be sure to compile this information as its valuable to your prospective buyer.
What Costs Are Involved in Selling a Business?
At Your Business Lawyer, we like to try wherever possible to agree fixed fees, or capped fees, for each deal. We find that this gives our clients better certainty than an hourly rate.
We always agree fees prior to engagement – for further information look at our business rates page.
How Do You Protect Yourself When Selling a Business?
The journey to selling your business is fraught with potential pitfalls. From agreeing the deal in principle, contract negotiations, and ensuring due diligence, right through to the transfer of shares and assets – the wording has got to be correct.
It’s your lawyer’s role to ensure the wording of all documentation is correct and that it protects you and your interests.
How Do You Value a Small Business?
Feeling confident in the value of your business pays dividends when it’s time to find the right buyer.
There are many factors which affect your business’s value, including:
- Business reputation
- Customer value
- Business age
- Product (s)
- Business circumstances relevant to the sale
Legal Help with Selling a Business
Chances are, arriving at the decision to sell your business has been an arduous (and probably emotional) one. To pay service to your business and the time you invested in it, enlist the help of an expert for the culmination of your business.
Regardless of your reasons for selling, the process shouldn’t be hurried. Give yourself and your employees plenty of time to disengage with the business, as well as to prove the business’s value to your potential buyer. Allowing ample time maximises the chances of a successful business sale, and gives everyone involved less headaches!
For specialist legal advice and a convenient communications approach, get in touch for a no-obligation chat to discuss the best options for selling your business.