Preparation before a sale pays dividends

By Paul Matthews, WHN

24 Oct 2023

Paul Matthews Jan 23

Plan ahead

Any buyer will likely raise due diligence questions to satisfy itself as to the value of what it is buying.

Being ready to respond to the due diligence questions efficiently creates a positive impression.

Review the affairs of the business with your professional advisers well before accepting an offer so you can identify and remedy any issues.

For example, do you have signed contracts with all your employees?

How about signed contracts with customers and suppliers? Are any assets subject to charges which need to be released?

If selling part of a business, consider what is required to separate the two parts and whether any transitional arrangements are needed for shared resources.

If issues only emerge once the transaction is proceeding, resolving them may delay or derail the transaction. Preparation pays dividends.

Take professional advice

To ensure it doesn’t encounter any unexpected issues, the buyer will likely require the sale contract be prepared by its solicitors.

Drafts of such contracts are often unduly buyer-friendly and require negotiation.

For example, such contracts may seek assurances as to the condition of business premises. Well-advised sellers resist this – the buyer should obtain surveyor’s advice.

Even where assurances about the business are reasonably sought, there will likely be various exceptions to those assurances which must be disclosed to the buyer before contracts are exchanged.

Professional advice helps ensure that the disclosures required are effectively made.

Expert advice plays a vital role in minimising the risk of the buyer seeking compensation under the contract.

Enjoyed this? Read more from Paul Matthews, WHN

Latest news

1

fulfilmentcrowd ships 200,000 items on Black Friday Fulfilmentcrowd Black Friday

fulfilmentcrowd ships 200,000 items on Black Friday

01 Dec 2023

2

Blackpool's civil service hub hits construction milestone Civil Service Hub Construction

Blackpool's civil service hub hits construction milestone

30 Nov 2023

3

Don't judge, not everybody's got a great brand, ok? Laura Weldon Studio LWD

Don't judge, not everybody's got a great brand, ok?

27 Nov 2023

4

Empowering businesses of all sizes with our pallet delivery service Pallet Services 01.jpg.jpg

Empowering businesses of all sizes with our pallet delivery service

03 Dec 2023

5

Glitz, glamour and generosity see Rainbow Hub ball raise £70,000 Rainbow Hub Ball 2023.jpg.jpg

Glitz, glamour and generosity see Rainbow Hub ball raise £70,000

01 Dec 2023

2664LBD980x120gif
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
Help to Grow Management Course
Collaboration v3.png.png
LBV Hub Seminars
31 Oct 2023 - 14 Feb 2024

Help to Grow Management Course

University of Central Lancashire, School, Online and face-to-face , UCLan, PR1 2HE

09:30 - 11:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
05 Dec 2023

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Withnell, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING Networking In Halifax (1).png.png
LBV Hub Networking
05 Dec 2023

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, Blackburn, BB1 3AL

06:45 - 08:30

Using your existing Pension to invest in Commercial property
Chris Montgomery SmgTvepind4 Unsplash
LBV Hub Webinar
05 Dec 2023

Using your existing Pension to invest in Commercial property

Zoom, Burnley, BB11 1JG

09:00 - 09:45

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
06 Dec 2023

Business Networking in Preston - BNI Diamond

Norman Jepson (Beefeater), Bluebell Way, Preston, PR2 5PZ

07:15 - 09:00

Business Networking in Lancaster - Eden Business Network
Eden Business Network.png.png
LBV Hub Networking
06 Dec 2023

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
07 Dec 2023

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

The Business Network Central & East Lancashire
LBV Hub Networking
07 Dec 2023

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:30

Twas the night before ransomware
Event Graphic 3.jpg.jpg
LBV Hub Seminars
07 Dec 2023 - 07 Dec 2023

Twas the night before ransomware

The Lowry Theatre, Salford Quays, M50 3AZ

14:00 - 17:00

Discover the power of BNI - Business Networking in Preston
Preston.png.png
LBV Hub Networking
07 Dec 2023

Discover the power of BNI - Business Networking in Preston

Samlesbury Preston Hotel, Preston New Road, Samlesbury, PR5 0UL

09:30 - 11:00

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
07 Dec 2023

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
08 Dec 2023

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV Advertising Visual NovDec
Subscribe now

Weekly news bulletin