Karen Edwards is an associate in Frettens’ Corporate & Commercial Team and is experienced in dealing with corporate transactions involving business and general company and commercial matters.
In this column, Karen sets out some key ways to groom your business for sale to make an attractive prospect for potential buyers, which it turn, should help you realise the best value upon sale.
- Show a stable financial pattern by maximising the trading success as much as possible
- Make sure accounts are in order and up to date
- Tie key staff and customers to long-term contracts
- Check that relevant legislation has been complied with and that all necessary licences, consents and insurances are in place
- Iron out any major legal issues
- If you are selling company shares, make sure that the statutory books and Companies House filing history are up to date and correct
- If operating from rented premises, ensure that there is a formal lease in place to give the buyer security of tenure
- Protect any intellectual property rights; the business trademark could hold significant value so make sure that it’s registered with the IPO
- Ensure management information systems are working smoothly; it is likely that a prospective buyer will want initial information prior to any formal due diligence process
Karen Edwards says “selling a business is often the culmination of many years of hard work nurturing and growing that business. Plan well and prepare the business for sale. Pick the right time to exit by considering the market and ensuring you will have the time to devote to the process. Choose a solicitor who specialises in business sales so that you get the right advice.”
Phone: 01202 499255 | Email: kedwards@frettens.co.uk
www.frettens.co.uk