Your business is prepared for sale, and now it’s time to carefully consider what your ideal deal might look like. While achieving the best price is important, the final transaction encompasses more than just the headline figure. We aim to find a combination of value and terms that suit your specific needs.
Deciding What's for Sale?
Are you selling your entire business or its assets? If the buyer acquires the business in its entirety, they will assume both its assets and liabilities. The buyer will also conduct due diligence to mitigate risks. From a tax perspective, many sellers benefit from lower tax liabilities when selling the entire business rather than just its assets. Seeking specialist advice early on ensures your best interests are served.
Dealing with Staff
Regardless of the deal structure, there may be implications for employees. Under UK law (TUPE), any obligations towards employees automatically transfer to the new owner. If your staff are integral to the operation of your business, the buyer will likely want to maintain continuity. Consulting with your staff throughout the process and gaining their support is crucial.
The Transition
Every deal structure includes details of the proposed handover period. It specifies whether you will sever ties immediately or remain for a transition period. The decision is yours. Some sellers opt for a minimum six-month handover period to facilitate a smooth transition and ensure the new owner's successful integration.
Payment Structure
The method of payment is also open for discussion. While cash on completion is common, other options exist, such as receiving shares in the new company. In the case of a public limited company (plc), share options might be attractive, but they pose risks in smaller businesses. Carefully exploring potential pitfalls is crucial if a share offer is presented.
Navigating these considerations requires careful planning and expert guidance to secure a deal that meets your needs and safeguards your interests. Let us assist you in structuring a sale that aligns with your vision for the future of your business.
CLICK HERE for information about how we can help you achieve a successful sale.
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