preparing to sell your business
DESCRIPTION
Preparing to sell your business can be more complex than it seems at first. The slideshow outlines some of the questions that need to be answered before you put up the business for sale sign. Whether the the business is a sole trader, a partnership, a private limited company, or a public limited company, many of the basic principles are equally valid. Get the basics wrong and the path to a sale could be fraught with difficulty.TRANSCRIPT
Preparing To Sell Your BusinessBy Anthony Jay DeePresented by Kevin Wilson
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
So, You Might Want To Sell The Business?
• Have you fully thought this through?
• How much could you get?• What are the pitfalls?• Where to get started?• A2Z Business Brokers is a specialist
broker• This presentation is part of a series• An introduction to the whole
process …• … and how we can help
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
What Are You Selling?
• Sole Trader?• Partnership?• Private Limited Company?• Public Limited Company
• Ideal and minimum selling price
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
Sole Trader:
• Should be straightforward – it’s just YOU
• Problem is with implied warranties• YOU are responsible• Legal claw backs for the purchaser after the sale
• YOU may be liable for up to 100% of sale value
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
Partnership:
• YOU plus OTHERS:• Others can be people• Others can be companies
• Everyone must be on board: • Partnership agreements cannot force signature on the day• Internal legal wrangles are not an option:
• Buyer will probably get cold feet• Employees may jump ship• Customers may re-source
• Sort wrangles internally, BEFORE the sale• Get it in writing: use a lawyer for this
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
Private Limited Company:
• Multiple shareholdings can be complex• The devil may be in the Articles of Association• Shares to be sold must be offered to other shareholders first• Shareholders can refuse to transfer shares to an outsider• Shares in a Private Limited Company can be made worthless unless all
shareholders in agreement• As with partnerships, sort internal legal wrangles BEFORE the sale process
starts• Get it in writing: use a lawyer for this
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
Public Limited Company:
• Shares usually easily transferred
• However, better to get full accord from day #1
• Beware the risks in doing this
• Risk of falling foul of militant minority shareholder at last minute
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
Purchaser’s Viewpoint
• For a SME buyer – probably not a regular activity
• Will have other business interests to run
• A dissenting camp will be a big turn off
• Extended negotiations NOT attractive
• Simple, tidy presentations ARE attractive
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
The Caveat
• For some purchasers – disarray is attractive
• Competitors can use the situation to kill the business
• Removes YOU from the market place• Fire sale assets can be bought for a
song• Customers will be desperate for a
new supplier
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
The Conclusion?
• For a smooth and quick sale• To maximise the selling price• The Purchaser needs to know:
WHATHe or She is buying
WHOIs selling: does
everyone agree?
Howmuch is required
to secure the sale?
Tel: +44 (0) 844 247 0 247www.a2zbusinessbrokers.com
Questions? More Information?
Web: http://www.a2zbusinessbrokers.com
Email: [email protected]
Tel: +44 (0) 844 247 0 247
A 2 Z Business Brokers LtdSuite A01The Manor House120 Kingston RoadWimbledonLONDONSW19 1LY