Some business owners have an overall exit strategy in mind from an early stage, quite often this involves selling their business. Preparing an exit strategy is always best practice as the unexpected can always arise, for example, a big offer from a larger company or a change in personal circumstances such as a health scare.
Best practice
Part of gearing your business ready for sale actually involves following best business practice, keeping clear records and policies and being fully compliant with all legislation applicable to your business. Preparation for a sale can mean keeping clear records of:
– up to date legal documentation for the business – for example, in a company, do you have a valid shareholder’s agreement? What about your terms and conditions of business? Website policies? Data protection compliance? Potential buyers will always want to carry out due diligence so they have a very clear picture of your business before they commit to buy
– employment records such as up to date employment contracts, employee handbooks, policies and ensuring they are regularly reviewed and updated
– protected assets and Intellectual Property, such as registering your trading name and/or logo as a trademark
– full accounts and management accounts – one of the first things a prudent buyer will want to look at
– established relationships with both your legal and financial advisors who know and understand your business who can be ready to comply with a due diligence request from a potential buyer.
Efficient Business
Gearing your business ready for sale will not only ensure you have an efficient business but when you are ready to sell, it will also make a difference to:
– generating interest from buyers;
– the price you can achieve from the sale; and
– reducing both the time and money completing the sale takes.
At AMD solicitors, our experienced Commercial Department can assist you with all the legal aspects of running your business and getting it ready for sale. Please get in touch with our team of Bristol solicitors to discuss your requirements, by calling us on 0117 9733989 or email us on info@amdsolicitors.com.
