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.
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:
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.
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.
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.
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.
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:
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:
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.Enquire Now
TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations. These regulations are designed to protect the employees of a business that is being sold. By law the employees of a business are to be moved, along with any liabilities which are associated with them, from the old employer to the new.
Legal due diligence refers to the process of undertaking a detailed legal assessment and investigation.
When talking about legal due diligence with reference to a business sale or purchase, the process would involve a collation of relevant information and documentation relating to the target business (and company if the shareholding is being bought/sold), review of the same by the buyer, the raising of additional specific enquiries, and reporting (usually the buyer’s solicitor reporting to the buyer).
This process would take place at the start of a transaction before exchange of contracts. One of the key objectives of a legal due diligence exercise is to identify any potential (or actual) risks associated with the transaction by analysing the information that is made available (or sometimes what is absent), liabilities, and obligations of the target company. This usually goes hand-in-hand with financial due diligence which is usually undertaken by the buyer’s accountant and/or tax advisers.
We recommend waiting to inform your employees until the sale is finalised in order to avoid any potential interference that could affect the deal. However, once all of the agreements are in place, subject to what you may have agreed with the other party, you should be able to let your employees know and explain exactly what is going to happen how it will affect them.
There are many different ways in which a business can be valued. This may involve looking at aspects such as the tangibility of assets, the stability of the business, the sustainability of profits, the size of the business including in terms of turnover, the longevity of the business, long term contracts, and goodwill assessment.
When preparing your business for sale, it is recommended that you aim to maximise these variables in order to increase the potential valuation.
Obtaining an accurate valuation right at the start of your business before selling 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.Enquire
The wonderful team at Valens was extremely helpful and walked us through the process every step of the way.
Valens Solicitors’ wealth of knowledge offered me numerous solutions and supported by their clear and concise explanations I was able to make a well-informed decision.
I am grateful for all the advice I received and felt it was all given in my best interests.
Everyone I dealt with at your office was well informed, helpful, professional and a great reflection on Valens Solicitors.
What I like about your firm is the quick and clear communication.
Thanks again for everything you have done. You made the process very easy for me.