Not everyone starts a business from scratch. Many people purchase an existing business or decide to change direction by disposing of an existing business. The processes around Business Purchase & Sales can be lengthy, stressful and extremely expensive; it is essential that they are handled well to ensure the maximum benefit.
There are many points to consider for both Business Sale and Purchase; here are just a few:
- Whether the potential suitor is a good fit for your business. If your eventual proceeds are likely to be affected by a drop in retained goodwill, will your customers like the new owners, and stay with them?
- Is the proposed purchase price a fair return on the value you perceive in the business? Careful guidance through the process can maximise the sum received as a return for the effort you have invested over time.
- Is the sale likely to happen at a good time from a tax perspective? Would it make the sale more tax efficient to wait for a period of time?
- Are the tax provisions within the sale agreement correct?
- Is the business you’re considering buying worth the value being asked? Is the business really as it appears?
- Is it likely to continue to generate the same sales as it has to date?
- Are there any hidden issues such as tax liabilities that haven’t been considered?
- Are the tax provisions within the sale agreement adequate?
For a Business Purchase, as well as a merger or acquisition, we can help with feasibility studies, business plans, forecast and finance options; these can be essential to ensure the security of the investment you’re considering.
Having supported a number of clients through both the sale and purchase processes over the years, we can help negotiate, support the Business Valuation process and to complete the necessary due diligence to ensure there are no surprises should the deal go ahead. We will also liaise directly with your solicitors to ensure the contracts are non-detrimental from a tax perspective.
Both sides of any Business Purchase & Sale are complex; if you’re considering embarking on either, contact us to find out more about how we can help reduce the complexity as far as possible and maximise the value you’ll receive.
Regardless of your ACTUAL long term goal, building a business to sell can be a really smart move:
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Thinking of selling your business? – When you’re selling your business it’s an exciting time, but it can also be a daunting time. There is a raft of considerations which can combine to make the whole process extremely stressful, but there is another way!