Selling a Company
Selling a company requires a considerable amount of consideration and an understanding of your own personal journey.
This is why you should seek legal support early on. Our commercial solicitors will be able to discuss with you your options and negotiate the heads of terms. At Attwells Solicitors we have a team of commercial lawyers who specialise in supporting SMEs. We can help you sell your company and move on to the next chapter of your life.
Reasons for selling your company
Most people will sell their business to improve their own cash flow or for other personal reasons such as retirement.
We have found that life events, things outside of our control such as a divorce or ill health can also be important reasons. Likewise, the stress of running a company day-to-day can be a factor, along with wishing to take on a new challenge or simply wanting to cash in on your success.
What you can expect when instructing Attwells Solicitors
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.
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