What steps should you take to prepare your business for sale (i.e. contracts, leases, outstanding disputes), what role will your solicitor take in selling your business and what skills should a company look for when choosing a solicitor?
Selling your business can be one of the most important decisions you ever make. Having invested considerable time and effort in building your business, its sale may hold the key to a secure and comfortable future.
Prior to a sale it is important to take a critical look at your business and identify any areas of weakness: dealing with these or simply being aware of them in advance can enhance your chances of a smooth process.
A buyer is likely to undertake extensive review of commercial, financial and legal aspects of the business (known as due diligence). Legal due diligence will include a review of all material contracts, employees, title to assets, intellectual property used by the business and any outstanding or threatened litigation.
Your solicitor’s assistance is vital as you will be expected to enter into a sale contract containing extensive contractual promises in respect of all such matters. Sound legal advice can reduce any potential liability under such contract and give you peace of mind that you are not going to be asked to repay part of the purchase price at some point in the future.
Your solicitor should understand your requirements and aims. He should communicate clearly and act pro-actively applying a sound mix of legal expertise and commercial acumen in order to meet your objectives cost effectively. As the sale process will often be both emotionally demanding and stressful you need a solicitor who can provide a personable and user friendly service.
Susan Clark is a partner and Head of Last Cawthra Feather’s Corporate Department. Susan’s expertise in the field of acquisitions and mergers is acknowledged by her inclusion in the authoritative Legal500.
Last Cawthra Feather LLP (LCF) a leading and an award winning law firm. The firm has offices throughout Yorkshire. It now has 12 partners and 115 employees. Visit www.lcf.co.uk for more information.
