PREPARATION PREPARATION PREPARATION
As we are now into the new Tax Year and for many many businesses the financial year ended on 31st March you may be thinking of selling your business, or obtaining a business valuation.
The key to a successful sale or a meaningful valuation is of course, preparation. It may be too soon to have the 31st March Accounts finished but certainly these should be put in hand as soon as possible. Also get your Sage or other management systems closed down for the year end. Accurate and timely accounting information is key to achieving a sale and will give your adviser the up-to-date data he or she needs to value your business.
Next, in respect of a sale you should be checking all other business records, agreements contracts etc. are fully up to date and compliant with current legislation. If your business has premises, whether leasehold or freehold you will need an EPC, Energy Performance Certificate. If you have staff they should all have contracts of employment. Wherever possible it will assist a sale if you can secure contractual work with your customers. You may not wish to tell your suppliers or customers you are thinking of selling so any approach to secure work or supply of goods/services will need to be carefully made.
Of course any blog article pertaining to preparation for a business or company sale can only scratch the surface so please take advice from the experts and do not rush. Shortcuts in preparation will inevitably catch you out in due diligence or during contract negotiations, leaving you with possibly a heftier than necessary legal bill and/or worse could be a dealbreaker.
As always I will try to assist prospective clients and, as a first run through for preparation I have produced a simple 1 page Checklist available HERE.
I offer free advice, no obligation and am willing to answer any questions, Please get in touch on 01256 770907 or via the CONTACT form.
Keith Green - selling businesses and advising SME business owners since 1997 and still enjoying it.