After a long haul of hard work and business building many entrepreneurs see the sale of their business as the final hurdle before they can reap the rewards from their endeavours.  Whether planning the sale right from the off, or taking an opportunity that presents itself, there are some simple measures that businesses can take to make the final hurdle a little less daunting.

 The first piece of advice is to continue running your business as if you were keeping control of it for the long-term.  Try to avoid making changes that look as if they are being made simply to help sell the business.  Instead, make sure your house is in order before you begin any sale process as issues which arise during the process can cause delays and price reductions or retentions.  

 Buyers generally look at four aspects of a business: accounts, strategy, management and staff. However it is the legal and contractual arrangements for each that can make or break a deal or dramatically impact upon price.

 Have your advisers do some pre-sale planning; consider the legal issues affecting all areas of the business, not just suppliers and customers but also employees, property issues and disputes.  A buyer of shares will also check that tax affairs are up to date and have been dealt with properly.  Getting it right from the start will save money as most buyers insist on contractual provisions making vendors liable for liabilities that arise after the sale.

 Finally, consider your intellectual property and ensure any proprietary knowledge is secure and transferable to the new owners.  This means clarifying that any patents, trademarks and domain names are all registered with the proper authorities as all form an important part of a business’ value.

 Whether you end up selling or not, the above issues are all important elements in protecting and enhancing a successful business.  With some good housekeeping and planning ahead, the final hurdle can be an exciting part of the adventure rather than an expensive leap of faith.

For more tailored advice please contact our Corporate Team