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Haines Watts Hull Phone icon 01482 598694

Whether you’re selling a business, buying or valuing a business, raising funds and finance, or would like strategic recommendations, our chartered accountants in Hull will facilitate are absolutely committed to giving the right advice and managing the whole process, minimising risks and obtaining the most effective deal for you.

This blog posts discusses how to sell or buy a business,  and how to prepare your business for sale. Here are a number of ways that we are able to form a part of your team to assist to sell you business:

Business valuations

There are many factors which can have an effect on the valuation of your business and therefore the value you achieve. Making your business as enticing as possible by streamlining operations and tying up loose ends could mean that your buyer is prepared to pay more. We’ll work with you to prepare for a sale, and make the process as smooth as potential to ensure that you maximise the value for your business.

Marketing

When selling a business, your business is the product, therefore you’ll need to promote it as such. Strong marketing can help you to draw in the best buyers for your business, and more importantly, help it achieve the right value. We assist with making a sales memorandum which is a document prepared for the aim of generating interest when selling a company.

Sales memorandums ordinarily include the following information:

  • Financial data such as profits, losses, cashflow, assets and debt
  • Employee data – range of staff, job roles and the premises on that they’re settled
  • Favoured sale structure
  • Special features e.g. patents
  • Company history
  • Company ethos
  • Business achievements and awards
  • Customer profile
  • Customer testimonials.

We will additionally undertake extensive analysis to identify appropriate potential buyers for your business.

Negotiations

It is necessary to remember that when it comes to negotiations both the customer and the seller are attempting to get the best deal when selling a business. It helps to have us on your side as we’ll support you throughout the negotiation process choosing preferred bidders and meeting with interested parties, and negotiate the best deal for you on your behalf

Financial due diligence

Once the terms of sale are set each party will then begin driving the deal to completion. At this stage, the purchaser can wish to carry out an investigation of the commercial aspects of the business to certify the claims a seller has made about their business are true.

This method is usually referred to as ‘due diligence’ involves the buyer spending some time at the business premises as well as completing off site checks of the following:

  • Tax compliance
  • Legal compliance
  • Customer contacts
  • Property and quality valuation
  • Past monetary forecasts
  • Intellectual property accounts.

Business exit and strategy

Your plan, or ‘exit strategy’ ought to include updating paperwork, tax requirements, informing the relevant organisations and checking out rental or lease agreements before commencing to any extent further. Exit methods ordinarily include the subsequent tasks:

  • Ensure that any equipment you are going to be passing on is well maintained which it meets any existing guidelines.
  • Ensure that all current contracts are in order.
  • Resolve unsettled disputes or any outstanding legal proceedings.
  • Ensure that the company complies with all current legislation.
  • Demonstrate that your  customer base is increasing. a potential buyer will be inquisitive about how full the corporate order book is and in the company’s relationship with its customers.
  • Ensure that all current procedures comply with health and safety rules.
  • Ensure that you have got clear possession of any intellectual property, together with brand names and styles.

How might an accountant help me to sell my business?

As mentioned above, an accountant will form a part of your team to provide advice on selling your business. An accountant will tackle the monetary aspects of the sale, tying up the required loose ends in terms of work and accounts while additionally supplying recommendations and guidance on problems such as limiting liabilities for Capital Gains Tax and creating the most of the reliefs available.

Advice on Selling a Business

Taking on an accountant can relive some of the responsibility when selling a business so that you are able to concentrate on different areas of the sale and keeping the company running.  For more information how we can help sell your business or if you are looking for a chartered accountants in Hull, please call 01482 598694 or get in touch via our online form.

 

Want to know more? Call us on 01482 598694 or email hull@hwca.com

About the author

Jennifer Toulson

Jennifer qualified in 1988 and became Managing Partner in May 2000. Jennifer has a wide knowledge of business in the area, both north and south of the Humber, enabling her to provide pro-active strategic business and tax planning advice to the firm's expanding client base.

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