For the overwhelming majority of business disposals in England, sellers must ensure they have competent transaction teams. However, if you are a company director seeking to sell your business, you may not be familiar with the individuals involved in a transaction team or their purpose. This article will explain a transaction team’s legal and commercial function in the context of a business sale in England. <\/p>\n\n\n\n
Selling your business<\/a> to a third-party buyer is a complex and time-consuming process. Therefore, selling a business requires oversight by a competent group of professionals with adequate experience advising on similar transactions. <\/p>\n\n\n\n As a seller, you will be involved in the buyer\u2019s due diligence process<\/a>, which can be intensive. After all, it is likely that the buyer’s questions will be highly technical. If you fail to answer the questions thoroughly, you can be held liable for any inaccurate statements, regardless of your intent. Depending on the buyer\u2019s position, they may even try and strongarm you into signing certain contractual documents that leave you on the hook for the business\u2019 future performance. <\/p>\n\n\n\n In this sense, the goal of the seller\u2019s transaction team \u2014 also called a deal team \u2014 is to level the playing field and ensure you are receiving the best possible value for the business you are selling. <\/p>\n\n\n\n A transaction team will likely comprise many professionals. However, as a company director, you will ultimately be responsible for the transaction’s outcome if any negligence, liability, or irregularity arises. This is because you cannot delegate your duties<\/a> to your professional advisers unless <\/em>you have taken all reasonable steps to ensure your advisers are competent. <\/p>\n\n\n\n In other words, if you (as a director) hire a friend as your legal adviser and she fails to advise your company on the terms of the sale agreement, you might be held liable. On the other hand, if you conduct a thorough tender process to find the right financial adviser and they later misvalue an asset, you may not be liable. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nYour Responsibilities As Director <\/h2>\n\n\n\n