What to expect when


selling your business Selling your business will be one of the most significant events of your career. Years of hard work will hopefully be coming to fruition. Julian Harvey, corporate partner at Penningtons Manches LLP, outlines some of the key considerations for owners of small businesses


Professional advisers


The right professional assistance to guide you through the sale process is essential from the start. Experienced and specialist advisers – including solicitors, corporate finance advisers and accountants – will not only make the process and negotiations easier, but will be able to spot potential issues in advance and tackle them long before they become costly problems or delays.


There can be significant tax implications in selling your business. Proper planning and structuring of the transaction with tax advice from specialist accountants early in the process can ensure that the transaction is as tax-efficient as possible.


Heads of terms


Heads of terms will normally be entered into by the parties, setting out the key terms of the transaction at its outset. They constitute a non-legally binding document, and provide a reference point for negotiations to prevent misunderstandings throughout the transaction.


Confidentiality


As part of due diligence, the buyer will examine your business with a fine toothcomb. Before any information is given to the buyer, you should seek to enter into a confidentiality agreement to ensure confidential information so that your business is protected.


Even knowledge that your business is being sold can have a detrimental effect on your employees, suppliers and customers. A well-drafted confidentiality agreement will protect your business in the event the sale falls through, and offers you recourse in case information is leaked.


Due diligence


Due diligence involves providing the buyer with information about your business and answering any follow-up questions. It is often the most time-consuming part of a sale. With guidance and assistance from your chosen professional advisers, preparation of the necessary information from the beginning can save you time and money.


BDO selected to promote UK mid-market businesses internationally


Accountancy and business advisory firm BDO was selected by the Greater London Authority (GLA) and UKTI to accompany Boris Johnson and a number of international trade delegations for mid-market companies over the past few months.


BDO was selected as ‘advisers of choice‘ because of the firm‘s widespread experience of working with mid-market businesses. Arbinder Chatwal (pictured) was handpicked by the London Mayor‘s Office to be BDO‘s official representative at the trade delegations in Mumbai, Punne, Boston and New York organised by the GLA, and at a fourth in Delhi organised by UKTI.


Chatwal explained: ”The events are designed to promote British business opportunities overseas and for UK businesses to understand the importance of effective marketing in these countries.


corporate finance 33 Legal documentation and liability


Under the sale and purchase agreement with the buyer, you will be required to give a number of contractual statements of fact relating to the business. These are warranties and to protect your position and limit your liability as the seller, your legal adviser should go through them carefully with you to allow you to inform the buyer of all circumstances in which the warranties are untrue, so that no breach of warranty claim can be made by the buyer on those grounds.


After the sale


You will now be embarking on the next episode of your life. Whether retiring or looking to invest further, you should obtain financial planning advice as early on in the sales process as possible to utilise the sale proceeds to their best effect.


Details: Julian Harvey 01483-791800 julian.harvey@penningtons.co.uk www.penningtons.co.uk


FSCS declares 21 firms in default


The Financial Services Compensation Scheme (FSCS) could help consumers that have lost money as a result of their dealings with any of the 21 failed financial firms in the South East and London that it has recently declared in default. (Visit: www.fscs.org.uk for a list of these companies.) Mark Oakes of FSCS said: ”FSCS protects consumers around the UK when authorised financial services firms cease trading, and it‘s free for consumers to use.


”Alongside the British consulate, we have managed to secure opportunities for UK businesses to pitch to major firms. So far delegates from the trip to the US sourced $8.5 million funding from a US private equity house.


”Brand Britain has never been stronger and there is a lot of appetite in the market for


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JUNE 2015


British companies at the moment.


”There is equally a lot of support from the Government, and from experienced advisers such as BDO and we invite companies to get in touch with us if they are serious about expanding abroad, so we can signpost them.”


”Our message to anyone who believes that they may be owed money as a result of their dealings with any of these firms is please get in touch, as we may be able to help you.”


Since its inception, FSCS has come to the aid more than 4.5 million people, paying out more than £26 billion in compensation. To make a claim with FSCS, contact the customer services team.


Details:


0800-678-1100 or 020-7741-4100 www.businessmag.co.uk


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