When someone builds up a business, it takes a lot of hard work, effort, and money over a long period of time. Sometimes, though, they need to leave that business behind, whether because they decide to stop working for themselves, or they are moving and their business is location based, or for whatever other reason. Selling a business, then, is often the best option. If you are doing that, you want to make sure it works as favorably as possible for you, and using a lawyer would be most beneficial. Here is why.
Making the decision to sell your business and embark on a new chapter in your professional and personal life is a big step – and, without the right resources and support on hand, one that will be made on rocky ground.
One of the best ways to keep from losing your footing at this vital stage is to work with a knowledgeable corporate solicitor. Not only will they always be many, many steps ahead of you in terms of what’s needed to complete the deal, but their practical experience and legal know-how can leave you feeling safeguarded against many of the pitfalls of selling a business.
Still need some convincing? Read more below.
They Can Help you Understand What Exactly You Are Selling
Business sales can be created around a number of different structures – are you planning on selling the business assets, such as its IP, goodwill, or contracts, or are you selling shares? This question can be much harder to answer if you haven’t talked it through with a corporate solicitor first.
They Can Help with Preliminary Agreements
One of the most valuable things corporate solicitors can do for those attempting to sell their business on, is to draw up preliminary agreements. A non-disclosure agreement, for instance, can spell the difference between a process moving forward discretely or in the public eye, while Heads of Terms offer a way of establishing intent before the final contract is signed, and can offer an additional level of peace of mind during those early stages.
They Can Ensure You Have the Proper Documentation to Hand…
Selling a business requires reams and reams of paperwork – paperwork that must be gathered and sorted well in advance if you’re hoping to avoid stressful hold-ups that may cause otherwise healthy professional relationships to fray at the edges.
For instance, if your buyer elects to do their due diligence on your business, it is much better if you have prepared all the necessary papers ahead of time. A corporate solicitor will have ‘been there done that’ many times before, and will be best-placed to anticipate what paperwork is needed, and when.
…and Make Certain that Paperwork is Filled Correctly, and on Time
Similarly, as well as producing plenty of documentation and paperwork prior to the sale, the sale itself will produce its fair share. Legal paperwork, such as acquisition agreements, restrictive covenants and contractual promises all need to be written in a certain way, or you risk reaching an undesirable outcome following the sale.
Only a solicitor with experience in this area can be trusted to draft these documents properly.
They Can Mitigate Stress
Finally, never underestimate quite how quickly the stress of selling a business can mount up. Not only are you attempting to navigate a highly complex environment and manage a sale that benefits both parties in the way intended, but you will also be trying to manage your company and keep everything in working order until it is no longer your professional responsibility.
Trying to manoeuvre this on your own is a bad business decision, and could impact you both personally and professionally, so always turn to a corporate solicitor as soon as possible.