{"id":180044,"date":"2023-03-15T13:29:17","date_gmt":"2023-03-15T13:29:17","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=180044"},"modified":"2023-03-30T01:11:06","modified_gmt":"2023-03-30T00:11:06","slug":"lawyer-sell-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/business-sale-purchase\/lawyer-sell-business\/","title":{"rendered":"Three Benefits of Using a Lawyer to Sell Your Business"},"content":{"rendered":"

One fact of life is that nearly all business sales involve significant time, effort and paperwork. Why? Because business sales involve lengthy negotiations and the transfer of significant value and liability. To protect both parties, these terms must be recorded in adequate legal documentation, which is often complex. This article will explore three significant benefits of using a lawyer to sell your UK business.\u00a0<\/span><\/p>\n

Understanding the Sale Process<\/span><\/h2>\n

The majority of UK business sales will involve:<\/span><\/p>\n

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  1. valuing the target business;<\/span><\/li>\n
  2. marketing the target business to prospective buyers;<\/span><\/li>\n
  3. facilitating the <\/span>buyer\u2019s due diligence<\/span><\/a>;<\/span><\/li>\n
  4. negotiating the purchase price and <\/span>transaction structure<\/span><\/a>;<\/span><\/li>\n
  5. drafting the sale-purchase agreement; and<\/span><\/li>\n
  6. executing the agreement and actioning any condition precedents.<\/span><\/li>\n<\/ol>\n

    Using an expert lawyer from the start to the close of this process has multiple benefits.\u00a0 We will now explore three significant advantages below.<\/span><\/p>\n

    Attaining a Reasonable Sale Price<\/span><\/h2>\n

    No business owner wishes to sell their company for an undervalue. It is, therefore, vital to ensure that you utilise the most suitable valuation method for your business. Along with a corporate accountant, a corporate solicitor can help you choose the best business valuation method. The following are the three most common methods:<\/span><\/p>\n

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    Asset valuation method<\/b><\/p>\n<\/td>\n

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    This calculation method values a company’s physical and non-physical assets and offsets liabilities. Physical assets tend to include stock, machinery and vehicles, whilst non-physical assets can consist of Intellectual Property (IP) and goodwill. Similar principles apply when valuing liabilities.<\/span><\/p>\n<\/td>\n<\/tr>\n

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    Income valuation method<\/b><\/p>\n<\/td>\n

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    This involves a thorough analysis of the company\u2019s income and cash flow. The sale price generated through this method will follow consideration of the company\u2019s pricing, sale figures and predictions of future profit measured against the buyer\u2019s expected return on investment.<\/span><\/p>\n<\/td>\n<\/tr>\n

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    Market value method<\/b><\/p>\n<\/td>\n

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    This calculation method compares your business to local competitors. For example, a car garage in Newcastle is likely to be compared to local garages within a five-mile radius. Those businesses’ average income, expenditure, and profit figures generate the sale price.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Unsurprisingly, picking the wrong valuation method can result in a much lower sale price. If your business is bringing in a lot of profit and income but has little in the way of assets, using the asset valuation method would be disastrous!<\/span><\/p>\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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