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Philip Astles

What do I need to do to sell my business ? Philip Astles, Managing Partner of Kidd Rapinet in Slough, specialises in all aspects of Commercial Law. Here he explains a commonly asked question “What do I need to do to sell my business?” In order to sell your business it is essential that you plan ahead. Your accountant and an experienced solicitor can provide guidance and advice to help you make a 12 month professional action plan to aid you in selling your business. This will help you prepare in order to receive offers that reflect the true value of your business. Try viewing your business from a buyer’s point of view. You would want and expect all documents relating to the business to be in order and organised.

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Slough office contact details: Kidd Rapinet Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


Main Kidd Rapinet Website

Philip Astles

What do I need to do to sell my business ? The buyer will have their own professionals look closely at the business, they would be looking to see that the profit and loss records are up to date, they will also expect you to have copies of all contracts with any suppliers, licences for any software your business may be using, your certificate of incorporation of your business, details of the trademark relating to the business and that all the staff has up to date employment contracts in place.

You should also keep separate files for each employee, containing a copy of their employment contract and details of annual appraisals, along with any pay raise request and you response to these. You may have had difficulties keeping your records updated due to being busy running the business alone, or due to financial issues that may have prevented you from getting employment contracts in place. You may also have unresolved issues; these issues need to be resolved at least 12 months before inviting offers.

Slough office contact details: Kidd Rapinet Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West

www.kiddrapinet-slough.co.uk


Main Kidd Rapinet Website

Philip Astles

What do I need to do to sell my business ? You need to be upfront about any outstanding issues that haven’t been resolved, because if the buyer’s professionals find that these issues are ongoing, they will become concerned and leave them questioning if there may be other problems that you haven’t disclosed to them. It is good practice to keep any correspondence between yourself and your landlord, along with a full copy of your lease agreement as the prospective buyer will want to view these. The buyer wants to see that the business is organised and profitable. If they are left waiting for you to find relevant documents regarding your business, this will leave them forming a negative view of the way you have been running your business. Their solicitor or accountant may advice against buying the business due to it being unorganised, or they may suggest making an offer below the true value of the business, as they view that because the business is not organised it may cause further problems down the line. However if they still decide to buy your business, and problems do arise that you should have resolved, the cost of rectifying these issues will be deducted from your future payments. This is why being prepared from the start is essential as the alternative will end up costing you money.

Slough office contact details: Kidd Rapinet Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


Main Kidd Rapinet Website

Philip Astles

What do I need to do to sell my business ? When you do sell your business it is likely that that you will be paid in instalments over an agreed time. It is also likely that the buyer will want you to continue working in that business for a set time. So although you will no longer own the business, you cannot necessarily leave immediately. Do not use company sales agents when you decide to sell your business. Contact an experienced solicitor in this field and your accountant, to discuss putting a professional plan of action in place to sell your business for its true value. They can give you a clear idea of what paperwork/documents the potential buyer will require.

If you need more information on what you should be doing to sell your business call me on 01753 439089.

Slough office contact details: Kidd Rapinet Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


What do I need to do to sell my business ?