Selling your business: Getting your house in order
Selling your business is both a complex and emotional journey and something that most people only do once in their lifetime.
The initial key negotiations with the buyer will centre around the price and structure and the post completion involvement of the sellers or directors.
Once the main terms are agreed the transaction then moves on to the due diligence phase and the information supplied in the due diligence replies will then usually be warranted by the sellers in the main share purchase agreement.
This period is relatively intense and can be made much easier if you have all of your paperwork in order and you know where it is!
Most businesses owners think that they are up to date with most legal compliance matters but it is helpful to consider the following:-
- Do all your employees have a Contract of Employment?
- Do you have all the necessary employment policies in place e.g., on GDPR and Bribery Act policy?
- Do you have all relevant Data Protection Agreements in place?
- Do you have licences for all your software?
- Do you have all the necessary consents and permits in place to carry on your business, particularly in relation to any environmental and/or health and safety issues?
- Is your holiday pay calculated correctly and in accordance with the most recent legislation, particularly if employees have regular overtime?
Arranging for all of this to be up to date and in order prior to the sale process commencing will allow you to concentrate on the bigger issues.
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