What should I consider when selling a company?
Firstly you will need to prepare your company for being sold. For example understanding and researching its possible value, to ensure you achieve the best possible price. Therefore you should consider the finances of your company. When selling a company a buyer will require records of your company trading history, company accounts for example. But also forecasts for potential earnings over a period of time.
Consequently, you should consider the company’s current and potential market share, external factors and trends, and brand value. This can be done by reviewing your company strategy.
Equally demonstrating internal processes such as contracts, policies, and HR matters are up to date will offer your buyer confidence.
Lastly, you should consider the value of your IT infrastructure and internal processes. This could include the value of the data you hold or a database. It could also include the value of any machinery or IT equipment.
Do I require TUPE when selling a company?
No, as the company will remain the employer of your employees. The shareholder or shareholders are changing not the company’s legal status. However, you should keep your employees informed to create goodwill and reduce the stress that your employees could be feeling.
What are my legal obligations when selling a company?
To be honest. Similar to when selling a house, both parties should act in good faith. Withholding information or misrepresenting facts could result in legal action. This is another reason why seeking legal advice is important.