Selling your Business - How Sterling Business Sales can help
The sale of any business is time consuming and stressful, but with our professional and efficient service you can avoid all the pitfalls.
Read our page on Capital Gains Tax for changes introduced 6th April 2008.
As professional advisors, Sterling Business Sales manage the sale on your behalf.
Our confidential service includes:
Preparing Your Business for Sale
The earlier you start preparing to sell your business, the better your chances of success will be.
- Sterling Business Sales will assist you in identifying any areas of the business that require improvement, which any potential purchaser would otherwise use during negotiations to drive the price down.
- By presenting the business in a favourable light and preparing solid forecasts and strategies to show purchasers the future potential of the business, we work towards securing the best deal for your business.
- It is important throughout the process to continue operating the business as if you were going to continue in ownership.
- Building a strong management team that reduces the business’s reliance on you can greatly enhance the value of your business to any purchaser, as their risk is reduced, since you are not critical to the business.
Business Valuation
The value of your business can be affected by a number of different factors:
- Timing of the sale
- Condition of the business
- The particular interests of the buyer
Selling the business when there is a new set of audited accounts available reduces uncertainty over the trading position and the assets being sold.
Sterling Business Sales can assist in determining the most tax efficient method and timing of selling your business. Capital Gains Tax is a major consideration, and general tax planning can assist in negotiations and allows you to work towards a specific outcome.
Preparation of the Sales Memorandum
The Sales Memorandum is used to attract potential buyers, and both its content and presentation are vital in generating interest in your business.
- The document provides basic information about the industry you are in, key financial information (turnover, profit, value of assets,) location of premises and staff.
- It is essential to emphasise the strengths of the business, highlighting any opportunities for growth or increased profits. Areas for improvement should also be addressed at this stage, to prevent any problems later on. An honest and open approach will gain the trust of any potential buyer and assist the sales process.
- Anything misleading will ultimately affect the price a buyer is willing to pay.
- Sterling Business Sales will prepare a concise and informative sales memorandum on your behalf, highlighting the full potential of your business, and ensuring you achieve the best possible price.
A proactive marketing programme - NO Business will sell itself
There are numerous business transfer agents that rely solely on website listings to attract buyers, and many will take large up front fees for this.
- Our approach, however, is to proactively market your business - At the start of the sales process we agree a marketing programme with you, which includes searching our database of prospective purchasers, liaising with our network of professionals (accountants, bankers and solicitors) and preparing carefully targeted mailshots.
- You will no doubt have views on potential buyers you want to include and exclude from the marketing process, so we work with you to establish a list of possible buyers, which could be trade buyers, or even new entrants to the industry.
Negotiation with interested parties
- Maintaining confidentiality is crucial to a successful sale. Once a prospective buyer expresses an interest we require them to sign a Confidentiality Agreement (which prevents them discussing the sale with any third parties) prior to providing any further information.
- We manage the flow of information very carefully throughout the process.
- At this initial enquiry stage we assess potential purchasers to eliminate time wasters and to confirm that they have the necessary funds available.
- We are then able to negotiate with interested parties, attend meetings and ensure the best outcome for you.
- Once a sale has been agreed and solicitors appointed, we liaise with all parties to keep within deadlines and to promptly address any issues that arise.
Assistance with appointing solicitors
Selling a business may well be a new experience for you, and you may not know where to turn for advice.
We have an experienced panel of solicitors who can assist you with all the legal aspects of selling your business.
Enquire Online
Use our Online Enquiry Form or Contact Us on 0800 0735353 to arrange an initial visit with one of our consultants.
