The Business Sale Process
From first contact we will ask for some details of your business to advise you, and provide a valuation. This initial run-through will enable the rest of the preparation process to be laid out.
Upon sale instruction, a sale file will be prepared containing financial and all manner of additional business information. This forms the Information Memorandum which is a "live" document, continually evolving through the sale. e.g. updates on management accounts, new equipment, contracts, changes in staff and so on.
The market is explored by way of online advertising, matching to our database, approaching competitors or complimentary businesses and our network of sale advisers who may be representing buyers interested in your company. This program is ongoing and repeated so as to cover the market thoroughly.
A non-disclosure agreement (NDA) is obtained prior to the release of any confidential data. Details within the NDA are checked to establish buyer credentials before sending any information.
Once a satisfactory NDA is provided, full details can be released to the buyer by way of the Information Memorandum (IM). This document contains the name of your business, comprehensive financial details, and other description, information and data - to enable a buyer and/or their advisers to decide if they wish to explore further the acquisition of your business.
Typically there may be many questions from prospective buyers. These can be used to add to and enhance the IM for sending to future buyers, as well as resolving queries and sustaining the buyer interest.
Usually there is a meeting or meetings between buyer and seller, leading to an offer from the buyer. This process may take some time depending on the size of business, funding options, decisions from interested parties and so on.
If the offer is acceptable, we will assist in the preparation of a Heads of Terms to clarify the buying and selling terms agreed. This is a non-binding document, signed by buyer and seller to ensure understanding prior to instructing solicitors.
Solicitors are normally engaged by both parties to act in their interests. Often compromises have to be reached to ensure the sale succeeds. Buyers and sellers want to achieve the same outcome so there is negotiation throughout.
Due diligence. (look before you buy). This can be an onerous and stressful part of the transaction. Preparation prior to sale can make the due diligence process smoother.
Contracts. The selling contract or Sale and Purchase Agreement (SPA) is drafted and negotiated between the acting solicitors. It may be accompanied by other documents such as a lease agreement, compromise agreement, tax deed or covenant, service contract (for any handover period) and so on.
Completion. The sale goes through on the agreed date. Money changes hands.
Post-completion. There can be a lot going on after completion. A handover from the seller (or even a longer term remunerated working arrangement). The purchase funds may be paid on a staged or earn-out basis, and may be performance related. New management may be brought in, or the business relocated. All businesses are different. Much of the post-completion arrangements are laid out in the Heads of Terms prior to sale.
From first contact we will ask for some details of your business to advise you, and provide a valuation. This initial run-through will enable the rest of the preparation process to be laid out.
Upon sale instruction, a sale file will be prepared containing financial and all manner of additional business information. This forms the Information Memorandum which is a "live" document, continually evolving through the sale. e.g. updates on management accounts, new equipment, contracts, changes in staff and so on.
The market is explored by way of online advertising, matching to our database, approaching competitors or complimentary businesses and our network of sale advisers who may be representing buyers interested in your company. This program is ongoing and repeated so as to cover the market thoroughly.
A non-disclosure agreement (NDA) is obtained prior to the release of any confidential data. Details within the NDA are checked to establish buyer credentials before sending any information.
Once a satisfactory NDA is provided, full details can be released to the buyer by way of the Information Memorandum (IM). This document contains the name of your business, comprehensive financial details, and other description, information and data - to enable a buyer and/or their advisers to decide if they wish to explore further the acquisition of your business.
Typically there may be many questions from prospective buyers. These can be used to add to and enhance the IM for sending to future buyers, as well as resolving queries and sustaining the buyer interest.
Usually there is a meeting or meetings between buyer and seller, leading to an offer from the buyer. This process may take some time depending on the size of business, funding options, decisions from interested parties and so on.
If the offer is acceptable, we will assist in the preparation of a Heads of Terms to clarify the buying and selling terms agreed. This is a non-binding document, signed by buyer and seller to ensure understanding prior to instructing solicitors.
Solicitors are normally engaged by both parties to act in their interests. Often compromises have to be reached to ensure the sale succeeds. Buyers and sellers want to achieve the same outcome so there is negotiation throughout.
Due diligence. (look before you buy). This can be an onerous and stressful part of the transaction. Preparation prior to sale can make the due diligence process smoother.
Contracts. The selling contract or Sale and Purchase Agreement (SPA) is drafted and negotiated between the acting solicitors. It may be accompanied by other documents such as a lease agreement, compromise agreement, tax deed or covenant, service contract (for any handover period) and so on.
Completion. The sale goes through on the agreed date. Money changes hands.
Post-completion. There can be a lot going on after completion. A handover from the seller (or even a longer term remunerated working arrangement). The purchase funds may be paid on a staged or earn-out basis, and may be performance related. New management may be brought in, or the business relocated. All businesses are different. Much of the post-completion arrangements are laid out in the Heads of Terms prior to sale.