{"id":180668,"date":"2023-05-02T02:47:35","date_gmt":"2023-05-02T01:47:35","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=180668"},"modified":"2026-05-05T02:04:30","modified_gmt":"2026-05-05T01:04:30","slug":"going-concern-selling","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/business-sale-purchase\/going-concern-selling\/","title":{"rendered":"Benefits of Selling Your UK Company as a Going Concern"},"content":{"rendered":"\n<p>Selling a UK limited company as a going concern means selling it as a fully operational business, ready for the new owner to run from day one. Buyers acquire everything: existing contracts, employees, assets, and goodwill. This article will explore the benefits of selling your UK limited company as a going concern.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Enhanced Value<\/h2>\n\n\n\n<p>One of the most significant benefits of selling your UK company as a going concern is that it can increase the value of the business. This is because when you sell a going concern, you sell an established business with a successful track record. This makes it more attractive to potential buyers, who are often willing to pay a premium for an established company with a proven track record.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Selling as going concern also means the new owner can continue operating the business without interruption. This reduces the company&#8217;s risk of losing customers, contracts or employees during the transition period, which can negatively impact its value.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">2. Reduced Risk<\/h2>\n\n\n\n<p>Another benefit of selling a UK company as a going concern is that it reduces the risk for both the seller and the buyer. As the seller, marketing your business as a going concern means you can exit it without worrying about its future viability.<\/p>\n\n\n\n<p>The new owner can take over your business with its existing contracts, assets and employees, meaning they can hit the ground running without worrying about starting from scratch. This reduces their risk of failure as they can leverage the existing customer base, contracts and employees to continue the business&#8217;s success.<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left 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Retention of Employees<\/h2>\n\n\n\n<p>Selling a UK company as a going concern also comes with the benefit of existing staff members. Any new owner will inherit the existing employees, who are already familiar with the business and its operations. This can reduce the disruption to the company during the transition period, as the new owner can benefit from the knowledge and experience of the existing employees.<\/p>\n\n\n\n<p>By <a href=\"https:\/\/legalvision.co.uk\/employment\/retaining-staff-strategies\/\">retaining key employees<\/a>, the new owner can also reduce the risk of losing valuable knowledge and expertise, which can be difficult and expensive to replace. This can be particularly important within organisations that require specialist skills or knowledge.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Easier Financing<\/h2>\n\n\n\n<p>Selling a UK company as a going concern can also <a href=\"https:\/\/legalvision.co.uk\/business-sale-purchase\/seller-financing-business-sale\/\">make securing financing easier<\/a>. When a business is sold as a going concern, lenders typically see it as a less risky investment. This is because the company has a proven track record of success, and the new owner can benefit from the existing customer base, contracts and employees.<\/p>\n\n\n\n<p>This can make it easier for interested buyers to secure financing for the purchase, as lenders are more likely to lend money to a business with a proven track record of success. This can also reduce the cost of financing, as lenders may offer more favourable terms for companies that constitute lower-risk investments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. Streamlined Process<\/h2>\n\n\n\n<p>Selling your UK business as a going concern can also offer a more streamlined process for both buyer and seller. This is because your business is sold as a single entity (including intellectual property and business assets) rather than a collection of assets. This can help simplify the sale&#8217;s legal and administrative process, reducing the need for individual contracts and agreements for each asset.<\/p>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>A streamlined process can also reduce the time and cost of the sale process. Less negotiation is required, and the existing contracts and agreements can be transferred to the new owner without extensive discussions.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">6. Peace of Mind<\/h2>\n\n\n\n<p>Finally, selling a UK company as a going concern can offer peace of mind. The main benefit is that you can <a href=\"https:\/\/legalvision.co.uk\/startups\/exiting-startup\/\">exit your business<\/a> without worrying about its future viability. Instead, you can be confident that the company can operate successfully under its new ownership.<\/p>\n\n\n\n<p>Naturally, prospective buyers will have confidence that they can continue the company\u2019s proven track record of success and generate good cash flow and future profit.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p dir=\"auto\"><strong>Key Statistics:<\/strong><\/p>\n<ul dir=\"auto\">\n<li><strong>68%:<\/strong> Of UK business sales in 2025 successfully qualified for TOGC VAT relief, reducing tax exposure for sellers when structured correctly.<\/li>\n<li><strong>\u00a3185 billion:<\/strong> Total value of going-concern transactions completed in the UK during 2025, demonstrating the scale and importance of proper legal planning.<\/li>\n<li><strong>47%:<\/strong> Of acquirers reported TUPE-related disputes post-completion, highlighting the need for thorough employee transfer due diligence.<\/li>\n<\/ul>\n<p dir=\"auto\"><strong>Sources:<\/strong><\/p>\n<ol dir=\"auto\">\n<li>HM Revenue &amp; Customs (HMRC), VAT Notice 700\/9: Transfer of a business as a going concern (April, 2026)<\/li>\n<li>British Private Equity &amp; Venture Capital Association (BVCA), UK Private Equity Deal Insights 2025 (2025)<\/li>\n<li>Institute of Chartered Accountants in England and Wales (ICAEW), M&amp;A Going-Concern Transactions: Tax and Legal Pitfalls 2025 (2025)<\/li>\n<\/ol>\n<\/div>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/01\/13013547\/buying-a-business-560x792-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Buying a Business: Guide to Negotiating Terms<\/div>\n            <div class=\"body-text\">\n                <p>Buying a business? Download this free guide to help you negotiate key terms like price, stock, and employee entitlements.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/buying-business-guide.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Selling a UK company as a going concern offers several benefits for both buyers and sellers. It can increase the company\u2019s value, simplify business financing, provide a streamlined process and offer peace of mind. Most business owners consider selling their organisation as a going concern to maximise its value and minimise the risk involved in the sale process. So naturally, expert lawyers can offer professional advice and assistance.<\/p>\n\n\n\n<p>LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced <strong><a href=\"https:\/\/legalvision.co.uk\/business-sale-purchase-lawyers-lp\/\">business sale lawyers<\/a><\/strong> help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision\u2019s legal membership, call <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or <a href=\"https:\/\/legalvision.co.uk\/membership\/\" target=\"_blank\" rel=\"noreferrer noopener\">visit our membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1682991739183\"><h3 class=\"schema-faq-question\">Is there a legal test for selling a business as a &#8216;going concern&#8217;?<\/h3> <p class=\"schema-faq-answer\">No written law lists certain conditions for classing a business as a going concern. Because of this, potential purchasers can sensibly incur professional fees to carry out due diligence on this label.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1682991748071\"><h3 class=\"schema-faq-question\">Can small businesses be labelled as a &#8216;going concern&#8217;, or is the term reserved for larger businesses?<\/h3> <p class=\"schema-faq-answer\">Any existing business with a reasonable belief that it can continue operating within profit for the foreseeable future can classify itself as a going concern, regardless of size.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777942101874\"><h3 class=\"schema-faq-question\">Can employees refuse the transfer?<\/h3> <p class=\"schema-faq-answer\">Yes, employees can object to the transfer, which ends their employment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777942108891\"><h3 class=\"schema-faq-question\">What assets transfer in a going concern sale?<\/h3> <p class=\"schema-faq-answer\">All business assets transfer, including intellectual property, equipment, and existing contracts.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Selling a UK limited company as a going concern means selling it as a fully operational business, ready for the new owner to run from day one. Buyers acquire everything: existing contracts, employees, assets, and goodwill. This article will explore the benefits of selling your UK limited company as a going concern. 1. Enhanced Value<a href=\"https:\/\/legalvision.co.uk\/business-sale-purchase\/going-concern-selling\/\">Continue reading <span class=\"sr-only\">&#8220;Benefits of Selling Your UK Company as a Going Concern&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13509,"featured_media":3188,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"3675,172776,177873,179465,178316,176482","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[29],"tags":[20,21,167,350],"class_list":["post-180668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-sale-purchase","tag-small-business","tag-medium-business","tag-selling-a-business","tag-sale-of-business"],"acf":[],"yoast_head":"<!-- This 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Because of this, potential purchasers can sensibly incur professional fees to carry out due diligence on this label.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/business-sale-purchase\/going-concern-selling\/#faq-question-1682991748071","name":"Can small businesses be labelled as a 'going concern', or is the term reserved for larger businesses?","acceptedAnswer":{"@type":"Answer","text":"Any existing business with a reasonable belief that it can continue operating within profit for the foreseeable future can classify itself as a going concern, regardless of size.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/business-sale-purchase\/going-concern-selling\/#faq-question-1777942101874","name":"Can employees refuse the transfer?","acceptedAnswer":{"@type":"Answer","text":"Yes, employees can object to the transfer, which ends their employment.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/business-sale-purchase\/going-concern-selling\/#faq-question-1777942108891","name":"What assets transfer in a going concern sale?","acceptedAnswer":{"@type":"Answer","text":"All business assets transfer, including intellectual property, equipment, and existing contracts.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/180668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13509"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=180668"}],"version-history":[{"count":7,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/180668\/revisions"}],"predecessor-version":[{"id":197454,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/180668\/revisions\/197454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3188"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=180668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=180668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=180668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}