Business & Corporate: Be Prepared – A motto for scouts and business owners alike

In all aspects of business, preparation is key. This extends to selling your business. When thinking of selling your business, it is important to prepare before you seek a potential buyer.  This creates the best chance of reaching a profitable outcome.  

Why is it important to be prepared?

The Contract for the Sale of Business should be the only source of ‘representations’ for the transaction. “Representations” including “oral Representations” are often made during the negotiation phase. They are often statements made about the business, its profitability and clients which are designed to persuade a potential purchaser to purchase the business. Ensuring the Contract for Sale is the only source of representations for the transaction minimizes disputes and creates certainty.

To ensure the contract is produced correctly and efficiently, you should initially provide at least the following information to your solicitor:

1. Names of your employees, their entitlements and positions held.
2. The name of the award by reference to which the employees are paid
3. A copy of the lease documents (a confirmed lease could add value to your business)
4. Financial Statements for the previous three financial years
5. Any ancillary agreements or documents necessary for the functioning of your business (e.g. photocopier agreements, subscription agreements)
6. Registration details relating to the business name

Inevitably additional business specific information will be required.

This will ensure that the contract for the sale of the business can be prepared efficiently.

If you are thinking about selling your business, please contact our Andrew Frank or shoot us an email today!

More from the Blog:

Don't wait: Think about your business exit plan now! 

What you must consider when selling your business

Keywords: business & corporate, selling your business, be prepared, purchase a business, acquisitions, M&A

 This article is provided to the reader for general information. It is not legal advice. It was written by Zdenka Marinov & Emily Graham and edited by Andrew Frank.