Solicitors for Selling a Business in Stockport & Cheshire
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Selling a business is a significant milestone that involves complex legal, financial and emotional considerations. Whether you are looking to retire or move on to new ventures, ensuring a smooth and profitable sale is paramount.
The intricacies involved in transferring ownership require a skilled Business Sale Solicitors who not only understands the legalities but also the unique dynamics of your business and industry.
At Mounteney Solicitors, we are your partners throughout the sale process, dedicated to achieving the best possible outcome for you. Our approach combines extensive legal knowledge with a deep understanding of business operations, ensuring that every aspect of your sale is meticulously planned and executed.
It’s beneficial to contact our Business Sale Lawyers early in the process to navigate the complexities and achieve the best possible outcome.
How can our Business Sale Solicitors Help?
Selling a business is a complex process that requires careful planning and expert legal advice. With years of experience in such transaction, our Business Sale Solicitors can provide you with several key advantages:
Valuation and Preparation: Our solicitors will work with you to prepare your business for sale, ensuring that it is accurately valued and positioned to attract potential buyers.
Legal Compliance: We will ensure that the sale process complies with all relevant laws and regulations, including tax, employment, and corporate governance requirements.
Contract Drafting and Review: We will draft and review all necessary legal documents, including the Sale and Purchase Agreement, warranties, and indemnities, to ensure that your interests are fully protected.
Negotiation: Our team will represent your interests during negotiations, working to secure the best possible terms and minimise any risks associated with the sale.
What is the Process of Selling your Business?
Selling a business is a significant undertaking that involves multiple critical steps, each requiring careful attention. Our team of experienced Business Sale Solicitors will be with you every step of the way, ensuring the process is as smooth and successful as possible. Here’s how we can help:
1. Valuation
The journey starts with understanding the true value of your business. While an accurate business valuation is typically carried out by accountants or professional valuers, our solicitors work closely with these experts to ensure all legal aspects are in place and the business is prepared for sale. This collaboration helps to set realistic expectations and attract serious buyers. Factors such as financial performance, market trends, asset values, growth opportunities, and competition are considered to reflect the business’s real worth, ensuring the legal groundwork is aligned with its valuation.
2. Preparation
Once we’ve agreed on a valuation, the next step is getting the necessary paperwork in order. These documents are essential for presenting your business to potential buyers and ensuring everything runs smoothly. Our solicitors draft every document with your best interests in mind, making sure everything is clear and transparent.
The key documents here include confidentiality agreements, heads of terms, and due diligence materials. Confidentiality agreements protect sensitive information during negotiations. The heads of terms set out the main points of the sale, giving everyone a clear idea of what’s expected. Due diligence documents give potential buyers a detailed look at the business, covering everything from financial records to contracts and operations.
3. Finding a Buyer
With the paperwork sorted, we help you find the right buyer. We’re careful to maintain confidentiality while reaching out to potential buyers through our network of industry contacts. Our goal is to find serious buyers who are genuinely interested in your business.
Negotiations are a key part of this stage. We work hard to ensure your interests are well-represented, aiming to secure the best possible deal. Our team handles all the details, from initial talks to final agreements, making sure your objectives are met.
4. Due Diligence with Potential Buyer
Due diligence is a critical stage where the buyer carefully examines your business to verify its details and assess its true value. We’re here to support you through the process, ensuring that accurate information is provided, questions are answered promptly, and everything stays on track.
As the seller, you’ll need to prepare several important documents, including:
Financial Records: These include profit and loss statements, balance sheets, tax returns, and cash flow reports. Providing a clear financial picture is crucial for the buyer’s evaluation.
Contracts: Copies of any key contracts the business holds, such as supplier agreements, customer contracts, and any ongoing commercial arrangements.
Employee Information: Details of your employees, including contracts, salaries, benefits and any ongoing disputes or issues.
Intellectual Property Rights: Documentation for any trademarks, patents, copyrights, or other intellectual property your business holds.
Compliance Records: Proof that your business complies with relevant laws and regulations, including health and safety certifications, licences, and environmental compliance documentation.
We work closely with you to ensure all documentation is organised and presented effectively, minimising the risk of any delays or issues that could arise during the due diligence process. Our goal is to streamline this phase, providing the buyer with all necessary information while protecting your interests.
5. Finalising the Sale
The sale becomes official once we’ve drafted and agreed on the Sale and Purchase Agreement (SPA). This is the main contract that sets out the terms of the sale. Our solicitors make sure that everything is clearly defined and agreed upon by both sides. We also prepare any additional documents needed to complete the transaction, such as employment contracts or leases.
6. Completion of Sale
Finally, we reach the point where ownership of the business is transferred to the buyer. But our support doesn’t stop there. We’re on hand to assist with any remaining tasks and ensure a smooth transition. This could involve helping with the handover process to maintain continuity or providing ongoing legal support if needed.
Working with our Business Sale Solicitors means you have a team dedicated to managing every detail of your business sale with care and expertise, ensuring the outcome is both successful and rewarding.
Our Business Sale Expertise
Jonathan Mounteney brings a wealth of experience gained from both in-house roles at major corporations like Sony Group and Co-operative Financial Services and over 15 years of private practice. This allows us to offer comprehensive legal services that cover all facets of a business sale, from initial negotiations to post-sale administration. When instructed to sell your business we will:
- Review the transaction legal structure
- Draft Due Diligence & send to the buyer
- Exchange paperwork & money with the buyer
- Continue to work on the post completion process with the buyer
- Keep you informed all the way
Our commitment to excellence is reflected in our track record of successful transactions across various sectors. We have facilitated sales for businesses of all sizes, ensuring that our clients receive fair value and favourable terms. Our no-nonsense strategy focuses on getting the deal done efficiently, minimising disruptions to your operations and providing peace of mind.
How long does it take to Sell a Business?
The time required to sell a business varies depending on factors such as the size of the business, market conditions and the complexity of the transaction. While the drafting of the documents will usually be completed within a few days, the overall process can take between six months to a year to be completed.
Our Business Sale Solicitors will take your instruction and advice as appropriate, then produce a suit of documents required to implement the transfer in the most cost-effective and most likely to succeed manner.
How much does it cost to instruct our Business Sale Solicitors?
Your supplier is SRA-regulated Mounteney Solicitors, that charges VAT some customers may be able to reclaim (prices stated excluding VAT);
| Transaction value | Our Fixed fee |
| £50,000 or less | £1,320 |
| £50,001 – £100,000 | £1,650 |
| £100,001 – £200,000 | £2,200 |
| Over £200,000 | Individually agreed |
(Commercial property aspects likely chargeable extra – see Deed)
There is more about our fees on our website.
If you have any questions, require any further information, or would like to engage us (that will be on the T’s & C’s that are linked, “Our Terms”, in the footer, below) please don’t hesitate to Contact Us.
Contact our Business Sale Solicitors
If you are considering selling your business, contact our team of expert Business Sale Solicitors at Mounteney. We offer a cost-effective and efficient service, helping you achieve your desired outcome.
With our client-centred approach, corporate solicitors ensure that you are fully informed and confident throughout the transaction. Our transparent communication, combined with our dedication to achieving your objectives, sets us apart as the go-to solicitors for business sales.
We have offices in Bramhall, Cheadle, Hazel Grove and Heald Green and our Solicitors in Stockport regularly serve clients throughout the Stockport and Manchester area including Altrincham, Marple, Poynton, Wilmslow and Sale.
With over 18 years of experience in the legal sector, you can trust us to provide a dedicated legal partner for your business sale.
Contact us today by phone or visit one of our offices for a consultation.
Frequently Asked Questions when Selling a Business
How Should I Prepare for Selling My Business?
Preparing your business for sale involves several crucial steps. First, make sure your financial records are accurate and up to date. It’s important to address any outstanding legal or regulatory issues and consider making improvements that could enhance the business’s appeal to potential buyers. Streamlining operations and cutting unnecessary expenses can also help present a more profitable and efficient business.
Why is Due Diligence Important in the Sale of a Business?
Due diligence is a critical part of the selling process. It allows the buyer to thoroughly examine the financial, legal, and operational aspects of your business. This step is essential as it provides the buyer with the confidence and reassurance they need to move forward with the purchase.
Can I Sell My Business if it Has Outstanding Debts?
Yes, you can sell a business that has outstanding debts. However, it’s essential to disclose all liabilities to potential buyers upfront. How these debts are managed will depend on the terms of the sale agreement.
In some cases, debts may be settled before the completion of the sale, ensuring a clean handover to the buyer. Alternatively, the buyer may agree to take on the outstanding liabilities as part of the purchase, which could affect the overall sale price. The sale agreement should clearly outline how debts will be handled, whether they will be paid off by you before the transaction or transferred to the buyer as part of the deal.
Our expert Business Sale Solicitors will guide you through this process, ensuring that the terms are properly negotiated and documented to protect your interests.
What is a Confidentiality Agreement?
A confidentiality agreement, also known as a non-disclosure agreement (NDA), is a legally binding document that protects sensitive information shared during the negotiation process. This agreement is particularly important when selling a business, as it helps keep the details of the sale private, which can prevent unnecessary concern among your current employees.
Are There Any Tax Implications When Selling a Business?
The tax implications of selling a business can vary depending on factors like the business structure, the nature of the sale and your personal tax situation. Some common considerations include capital gains tax, VAT, and stamp duty.
However, sellers may also be eligible for tax relief, such as Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief). This relief allows qualifying business owners to pay a reduced rate of 10% on capital gains, up to a lifetime limit. To qualify, certain conditions must be met, including holding at least 5% of the business’s shares and voting rights for two years prior to the sale. It’s essential to plan ahead and seek professional advice to make the most of any available tax reliefs.
Our Business Sale Solicitors can help you navigate these tax considerations, ensuring that your transaction is structured in the most tax-efficient way possible.
What Happens to My Employees When I Sell My Business?
When a business is sold, the employees contracts are usually transferred to the new owner under the same terms and conditions. This process is governed by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). It’s important to communicate openly with your employees about the sale and any potential changes that may affect them.