At some point or another, a time will come whereby a business owner will wish to sell or dispose of their construction or engineering business. However, whether moving on to pastures new or simply looking to cease trading completely, the business sale process poses a number of challenges – which is why it is wise to seek specialist advice.
Due to the many diverse ways in which businesses can be sold, prospective purchasers can assess the value of a business in a number of different ways, depending on what they intend to achieve.
Such terms might include:
- The amount to be paid.
- The form in which the business is to be sold.
- Whether employees or consultants must remain working for the business for a certain period of time.
- Non-compete agreements.
- Confidentiality agreements.
Matthew Johnson, a specialist in Company and Commercial law at Palmers, said: “When it comes to selling your business, it could be easy to think of the process as being just like selling any other valuable asset, such as a car or a house.
“However, businesses are complex entities. They can be sold, in whole or in part and can be divided up or restructured in innumerable ways.
“The different ways that prospective purchasers can assess the value of a business will depend on precisely what they are looking to achieve from the purchase, but will always be informed by their knowledge of the terms of similar sales in the recent past.
“These terms can include the amount to be paid, the form in which the business is to be sold, whether you must remain as an employee or a consultant to the business for a certain period of time, non-complete agreements and confidentiality agreements.
“Having an idea of the most advantageous terms you are likely to achieve in the sale of your business is necessary to inform the tasks of optimally preparing it for sale, marketing it appropriately and negotiating the sale.
“Seeking specialist advice at an early stage from an experienced professional is therefore crucial,” he said.
The Company Commercial department at Palmers Solicitors can advise on sales and purchases of businesses, either by the sale of shares or assets, advising on aspects including warranties and indemnities, disclosure, financial arrangements and potential liabilities.
For more information about how our team can help you to sell or dispose of a business, please contact us.