Are you considering selling your business?
If you are looking to sell your business here are a few practical tips to maximise the opportunity to sell and also the sale price.
If you are considering selling your business, the first matter to consider is the transaction structure. In general there are two methods of selling a business, either selling the shares in a company or alternatively selling a business as a going concern which involves selling the assets and goodwill of a company. Corporate solicitors can provide legal guidance on which structure would be most appropriate.
Tax and tax efficiency is the main determining factor as to which structure would be the most appropriate. Legal considerations are often secondary considerations in determining which structure would be the most appropriate.
Once you have determined which structure would be the most appropriate the next consideration is how to find a potential buyer. There are many corporate finance brokers in the market to sell businesses and who can find buyers for your business. However before choosing which would be the most appropriate you might wish to find out whether they have acted for anyone in your market sector and if so you should ask to see a testimonial. Your corporate solicitors might be able to recommend a suitable corporate finance broker.
Once you have short listed a few brokers, the next stage in appointing a broker will be to agree a fee structure with them. Many brokers ask for an initial upfront fee whether or not they sell the business. In addition they also generally require a commission fee which is based upon the successful sale of the business and which is a percentage of the sale value.
In general you should try to ensure that the upfront fee is as low as possible since this has to be paid whether or not the broker sells your business and whether or not you decide to appoint an additional broker.
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ABOUT THE AUTHOR
The author, Christian Browne is a business solicitor and the Managing Director of Summerfield Browne Solicitors (http://www.summerfieldbrowne.com) which have offices in Oxford, Cambridge, Birmingham, London, Northampton and Market Harborough. Christian Browne is also a legal advisor with the Institute of Directors in London. Christian Browne can be contacted on (0044) (0) 1858 414284 or by email on firstname.lastname@example.org