Our Service

If you are considering the purchase or sale of a business, whether by way of a business asset transfer or a share transfer, then taking early legal advice can be of considerable benefit. It will enable you to better consider the matters that should form part of the Heads of Terms and the various aspects that will need to be dealt with during the transaction.

How we can help with buying or selling a business?

At Valens Solicitors we have a team of expert commercial solicitors who can help you with a wide range of issues that may arise when buying or selling a business. Our team have expert knowledge and experience in:

• Heads of terms preparation/negotiation
• Asset transfers or purchases
• Share transfers or purchases
• Legal due diligence
• TUPE
• Collateral transactional documents
• Transactions involving property
• Share options and earn-outs
• Employee settlement agreements
• Post-completion service agreements

To take advantage of our extensive legal expertise, please get in touch with our settlement agreement solicitors today on 020 3368 3970  or click below to book a free, no-obligation consultation.

Book Free Consultation

Do you need a solicitor to sell a business?

You don’t have to have a solicitor in order to sell your business, however, we highly recommend that you do take legal advice. Selling a business can be a complex process and a solicitor can help prepare your company for sale and assist you throughout the sale process.

A solicitor can help is when it comes to negotiation of terms, dealing with legal due diligence, and negotiating legal documents including the sale contract. The wording of terms and conditions contained in transaction documents such as contracts are very important as they are likely to be legally binding.

Once agreed, such documents cannot usually be subsequently amended unilaterally, and you may be stuck with what you agreed if the other party is not prepared to agree to a variation. Having a solicitor as part of your team during a business sale can enable you to ensure that the transaction documents are prepared to your requirements and that you understand what you are agreeing to.

How long does it take to sell a business?

A business sale can be a complex process and is likely to involve many different aspects. There is no hard an fast rule as to how long this process will take as it really depends on the specific transaction, what is involved, and how motivated the parties are to proceed quickly. Many different factors can affect the likely overall timescale of a sale.  We recommend that you speak with a member of our team to discuss transaction timing.

Advice for buying or selling a business

In the event that you’re considering buying a business or selling your own, we recommend getting in touch with one of our solicitors. However, here is some initial guidance from our professional commercial solicitors regarding some key aspects.

Buying a business

When buying a business there are a number considerations that you need to make to take account of in connection with your proposed purchase. Would you rather purchase a small business and build it up or do you want to buy a more established company and see instant results? It may be that you are looking to add a business as a ‘bolt-on’ to an existing business you run, which would involve a purchase or a merger.

Here are some other aspects that we recommend you think about before buying:

• Assess the value of the business – Valuing a business can be very difficult as there are many different valuation methods that can be utilised. You may need to consider taking advice from a professional valuer. Many different factors can play a part in determining how much a business is worth. This could include turnover, profitability, assets, contracts, goodwill to mention a few. You should also look into the reasons for the current owner selling, and ask to see recent financial information regarding the  performance of the business.
• The Market – You should assess the market’s potential for growth before purchasing to ensure that there is scope for your investment to continue, and hopefully, grow.
• Due Diligence – You should ensure that you carefully look into all relevant aspects of the business (and also the target company if you are looking to purchase the shares), both legal and financial. This aspect of the transaction can be time consuming but it is certainly worth the effort in terms of getting to know the ‘ins and outs’ of the business. It should also highlight areas where warranties and/or indemnities may be required from the seller.
• During the transaction – Throughout the course of the purchase transaction a solicitor can guide you through the various matters that need to be considered and dealt with, including legal document preparation and sale agreement, and matters that are important to you can be provided for.
• Planning – Having a thorough plan for after the transaction is completed is paramount. You should ensure that you set realistic and achievable year-on-year goals.

Selling a business

Selling a business can be a complex process. A significant amount of planning and consideration is required, and multiple aspects needs to be dealt with at the same time. However, with a solicitor who has expertise in this area of law to assist you, the transaction can be dealt with smoothly and efficiently.

To ensure your business sale goes well we recommend you consider:

• Determine the value of the business – You should ensure that you take advice as to the value of your business when you decide to market it for sale. Obtaining an accurate valuation right at the start can help you during the sale process when a buyer will want to undertake detailed due diligence to determine whether the business is actually worth what you want for it. If the value is not accurate or realistic then this can mean protracted negotiations and a delay to the transaction as parties renegotiate on the price.
• Preparation – To ensure that the entire process goes smoothly, preparing is essential. Making sure that you have all the paperwork, accounts, properties, and customer base in order can help you massively in the long run. A solicitor can assist you in organising and collating information and documentation in readiness for legal due diligence and deciding what matters need to be provided for in head of terms or the sale contract.

• The process – Understanding the process that is involved in the sale of a business will assist you in focusing on the different aspects that will need to be dealt with. We recommend gaining an early understanding of the transaction process. Speak to a member of our team today.
• During the transaction – Throughout the course of the purchase transaction a solicitor can guide you through the various matters that need to be considered and dealt with, including legal document preparation and sale agreement, and matters that are important to you can be provided for.

Why choose Valens Solicitors?

We recognise that all our clients are unique, and that they have varying requirements and objectives. We focus on our clients and if you instruct us, we will be on your side. We will work with you when you have challenges and help you overcome them in an efficient and cost effective manner.

To take advantage of our extensive legal expertise, please get in touch with our settlement agreement solicitors today on 020 3368 3970  or click below to book a free, no-obligation consultation.