What you need to know when selling a business - part 1

In part one of a four part series, Jeremy Blatherwick, a Solicitor at Tallents in Newark, explains why you should always consult an experienced commercial lawyer when selling a business.
 
 
Jeremy Blatherwick of Tallents Solicitors, Newark
Jeremy Blatherwick of Tallents Solicitors, Newark
Sept. 17, 2010 - PRLog -- Jeremy says,
“Selling a business that you’ve spent years building up can be very emotional and these emotions can sometimes cloud your better judgment. This is potentially the most important financial deal that any business owner can make and it makes sense to draw on the experience of people who have extensive knowledge of buying and selling businesses every day.
“The right advice will have a big impact on the amount of money you could receive and on any ongoing liability following the sale, so for a successful sale, always speak to your lawyer first.”

This is a complicated area of law, so in this first article Jeremy gives three reasons why it is essential to use a good solicitor when selling your business:
1.       A business sale is generally structured to dispose of the shares or the assets. Either method will have tax advantages and disadvantages but without proper legal advice it can also be very easy to inadvertently transfer the assets of the business while still retaining responsibility for the business contracts.
Says Jeremy,
“This could potentially leave the seller, and not the buyer, with the legal responsibility for settling invoices with the suppliers for goods and services. This is not a good situation to be in.”
2.        During the sale process, the buyer will have access to large amounts of confidential information about the business, which you might want to keep private. This might include your customer lists, full, detailed account, pricing and profit margins.

Jeremy comments,
“A solicitor can draft a binding agreement preventing the prospective buyer from disclosing this confidential information to any other party. A confidentiality agreement is especially important if the deal falls through as without it, the buyer could use this information against you.”
3.        Depending on the offer being made, it is possible that the buyer might want the added security of an exclusivity agreement before they complete the purchase.
Jeremy comments,
“If an exclusivity agreement is requested then sellers need to check the small print very carefully. Your solicitor should ensure that once the agreement period has ended you are free to negotiate with other interested parties. Without this, you might be locked into protracted negotiations while betters offers have to be ignored.”
In the next article in August, Alistair Millar, a Solicitor at Tallents in Southwell, will explain the main terms of the agreement, known as ‘heads of terms’, why proceeding without due diligence is very risky strategy and what approvals and consents need to be sought to achieve a successful sale. Tallents has a range of experienced commercial lawyers who can advise you if you want to sell, or buy, a business.

For more information, contact Tallents on 01636 671881


Tallents Solicitors, 3 Middlegate, Newark
www.tallents.co.uk


ABOUT TALLENTS

Established in 1774 and with offices in Newark, Mansfield and Southwell, Tallents Solicitors services the legal needs of private individuals, company and commercial clients and farmers in North Nottinghamshire and Lincolnshire.

We still offer a personal service to our clients and our size and structure ensures that partners are never remote from our clients. We provide a full range of legal services and our expertise covers all areas of law including:

Agricultural law, criminal law, commercial and domestic property transactions, inheritance tax planning, trust and estate administration, wills and probate, commercial and general litigation, employment law, company and commercial law, intellectual property, matrimonial and family law, personal injury claims and children issues.

In 2009, Tallents celebrated 235 years, having served more than nine generations of North Nottinghamshire and Lincolnshire people. This makes Tallents one of the oldest law firms in the county and possibly the UK.



Release issued by Liselle Barnsley, Tailored Marketing Solutions Limited, 07901 823877

# # #

We can offer affordable and focused marketing solutions for your company. We can work as an extension to your existing marketing team, or on a consultancy / project-by-project basis.

Visit www.tailoredmarketingsolutions.com for more information.
End
Tailored Marketing Solutions Limited News
Trending
Most Viewed
Daily News



Like PRLog?
9K2K1K
Click to Share