An owner may decide to dispose of a business for a number of reasons. This may include for retirement, family reasons or due to trading or cashflow issues.
The timing of the exit will be important. In addition the taxation consequences will need to be considered to ensure taxation costs are minimised on the sale.
Our advice will normally be to plan the exit in advance so that maximum value can be obtained for the business and the marketing process can be undertaken effectively.
However, it will often be the case that many businesses only consider selling at relatively short notice, such as when an event occurs, illness, a period of poor trading or an unsolicited approach has been received. In these circumstances, the owner will normally decide a quick sale is required. Maximum value may not therefore always be achieved.
We would therefore recommend that a possible disposal should be part of the strategic ‘what if’ plan for the business so that they are able to react quickly should circumstances require it and are in the best position to maximise value.
We have many years’ experience in advising owners on the sale of their business. The service we provide includes:
- Valuing the business.
- Discussing the factors which effect the selling price.
- Advising on building value and maximising the sale price.
- Marketing of the business through our professional and business contacts.
- Identifying potential acquires.
- Leading the negotiations.
- Liaising with the legal team.
- Managing the process to completion.
If you have any questions regarding disposal of a business – please get in touch with your usual Lambert Chapman contact and we will be happy to assist.
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.