Selling a Business - Business Sale Solicitors

When selling a business in the UK, it is advisable to engage the services of a commercial property solicitor who specialises in business and commercial law.

Selling a business involves drafting or reviewing numerous legal documents, including sales agreements, non-disclosure agreements, and contracts. Our solicitor can assist in preparing these documents, ensuring they are accurate, comprehensive, and legally binding.

Our team of commercial property solicitors in Wembley, London can provide you with legal guidance and support throughout the selling process of your business.

No matter where the commercial property is, our solicitors provide legal services regarding the buying & selling of businesses throughout England and Wales.

Contact our highly experienced commercial property solicitors in London on 020 3417 3700 for legal advice and help relating to the sale of your business.

Table of Contents

1. How to sell a business in the UK?
2. How to value a business to sell?
3. Do I need a solicitor to sell a business in the UK?
4. Need Legal Advice & Assistance?

How to sell a business in the UK?

Selling a business in the UK involves several steps to ensure a smooth and successful transaction.

Here is a general overview of the process:

1. Preparation and valuation
2. Engage professionals
3. Confidentiality and marketing
4. Prospective buyer screening
5. Negotiation and due diligence
6. Legal documentation
7. Completion and handover

Preparation and valuation

Begin by preparing your business for sale. This involves organising financial records, identifying assets and liabilities, and conducting a thorough valuation to determine the appropriate asking price. You may consider hiring a professional business valuator or an accountant to assist with this process.

Engage professionals

Seek the assistance of professionals who specialise in business sales, such as solicitors, accountants, or business brokers. They can guide you through the legal, financial, and marketing aspects of the sale.

Confidentiality and marketing

Maintain confidentiality during the sales process to avoid any negative impacts on your business. Prepare a comprehensive information memorandum or sales prospectus outlining the key features, financial performance, and growth potential of your business. Advertise the sale through appropriate channels, which may include online platforms, industry publications, or engaging a business broker.

Prospective buyer screening

Evaluate potential buyers to ensure they are financially capable and genuinely interested in acquiring your business. Request confidentiality agreements before providing detailed information about your company.

Negotiation and due diligence

Once you receive offers from interested buyers, enter into negotiations to finalise the terms of the sale, including price, payment structure, and any conditions or contingencies. After reaching an agreement, the buyer will typically conduct due diligence, examining your business's financial, legal, and operational aspects.

Legal documentation

Work with your solicitor to draft or review legal documents such as the sales agreement, non-disclosure agreements, and any other necessary contracts. Ensure that the terms are clear, protect your interests, and comply with relevant laws and regulations.

Completion and handover

Upon satisfying all conditions and contingencies outlined in the sales agreement, proceed with the completion of the sale. This involves transferring ownership, settling financial arrangements, and facilitating a smooth transition of the business to the new owner. Prepare a handover plan to transfer knowledge, relationships, and key operational information.

It is important to note that the process of selling a business can be complex and may vary depending on the nature of your business and the specific circumstances. Seeking professional advice from solicitors will help ensure a successful and legally compliant sale.

How to value a business to sell?

Valuing a business is a critical step in the process of selling it. There are several methods you can use to determine the value of your business such as financial statements analysis, asset-based valuation, market comparable, and discounted cash flow (DCF) analysis.

Do I need a solicitor to sell a business in the UK?

While it is not a legal requirement to hire a solicitor to sell a business in the UK, it is highly recommended to have legal representation throughout the process. Selling a business involves various legal aspects, complex documentation, and potential risks, and having a solicitor can help protect your interests and ensure a smooth transaction.

Contact our commercial property solicitors in Wembley, London on 020 3417 3700 for proactive, expert legal advice for buying or selling an existing business. We will identify potential legal issues, review & negotiate contracts, and ensure compliance with legal requirements.