Whether you acquire a business or selling your business, the whole buying and selling a business process can be daunting and expensive for both the seller and buyer. The methods in which the buying and selling a business that take place are two completely different ones and need full attention to detail from a legal perspective. Selling your business can be motivated by several factors for example, complications with money, ill health or even boredom.
JMR Solicitors can help you put together a plan for your buying or selling transaction to go as smooth as possible. JMR Solicitors will assist you throughout to ensure that you save time and money with any unnecessary stresses that could arise.
When buying or selling a business timing is important. When you are selling you want to ensure you are gaining the maximum returns possible and ensure your business is sold in the best way. On the other hand, when buying a business this could be a great way for you to break the market, or expand an existing business. Regardless if you are selling or buying there are some key things to consider and we have outlined them below for you.
Buying a business
Buying a business can become a time consuming and lengthy process, so it is crucial that you set aside enough time for due diligence. Some businesses you will look at purchasing will have existing contracts for example, suppliers will have their existing contracts which you have to honour, but you may want to renegotiate costs. Whether this is your first time buying a business it is highly recommended that you seek legal and professional advice from solicitors, accountants and business advisers.
Having expert advice and guidance will ensure that you seek out any hidden problems or challenges that the business may have which you will not experience until you are ground level with the business.
What factors to consider when buying a business
- Buying a business can be a timely consuming, so it is crucial that you set out enough time for due diligence
- Businesses may have existing contracts in place that must be honoured so we can look at renegotiation the rates or contract details
- Prepare yourself for any unexpected challenges which could arise which we can advise you on
- If the business has staff, will they be part and parcel of the business sale transaction?
- Ensure that you have enough capital to invest in the business
- Identify any struggles the business has and prepare a strategy to turn the business around
- Understand your competitors and suppliers
Selling a business
If you have sold a business before or this is your first time its no secret that this can be a complex project. There are a few factors to consider when you are thinking of selling your business and whether you make a profit on the business will depend the time of the sale and the current strength of the business. There are a host of things to consider during the sale of a business.
JMR Solicitors can help with the following when you are selling a business:
- Heads of Agreement – Used across the commercial sector. The agreement will outline the key areas which have been agreed upon from the start. It is not necessarily legally binding, but it is a good place to start before the negotiating begins. Sometimes we can outline what is to be considered as confidential, exclusive and so on.
- Due Diligence – We will outline to the buyer exactly what it is that they are purchasing with full details on all legal, contractual and financial risks.
- Sale and Purchase Agreement – The major part of your deal is the sale and purchase agreement, which records the rights and responsibilities to all parties involved in the buying and selling of a business.
- Disclosure Letter – This is usually a letter that is provided if there are issues in addition to the warranties in the Sales and Purchase agreement that the buyer may need to be aware of.
Buying and selling a business with JMR Solicitors
The Corporate team at JMR solicitors have the knowledge and expertise you need to ensure a pleasing conclusion across all of your buying or selling business activities. Please contact the team directly on firstname.lastname@example.org, call 0161 491 3933.