Client Services
I am thinking of selling my business
Is there anything I should do before I start talking to potential buyers?
One of the best ways to improve your chances of selling your business and getting the best price is to prepare for a possible sale well in advance. Depending on the nature of your business and the business structure you use, this can involve reviewing your accounting structure and making sure that your accounts are complete and accurate, working out whether there are any assets which are owned by the business but are not going to be a part of a sale (for example cars used by family members) and dealing with those assets before the sale, considering the tax issues, particularly capital gains tax consequences of a sale and obtaining accounting and legal advice before you proceed.
If you run your business using a company, then you need to be aware of the different ways in which you can sell the business. One way is for the company to sell the business and all of the business assets. Another way is to sell all your shares in the company. The implications of selling the business and its assets out of the company versus selling the shares in the company itself are very important. Depending on the choice you make, the tax consequences can be very different. For example, if the company sells its business, you may end up paying much more tax than you would if you sold your shares.
It also helps if you know what kind of issues can arise in a sale and what kind of information buyers are likely to require. By obtaining legal advice in advance about these issues, you will have a better understanding of what happens when you try to sell your business and you can find out what steps you need to take to prepare your business for sale, to minimise your risks and to maximise your return.
We recommend obtaining legal advice and accounting advice before you start looking for a buyer, so that you can prepare for a sale.