The important role of advisors when selling your business

The important role of advisors when selling your business

Selling your business, whether in full or in part, is no mean feat and something which is often a true lifetime event for the individuals in question. In a lot of cases, formal advice is not sought and this can lead to issues during the process, subsequently extending the process, leading to material value loss or an ultimate failure in the proposed transaction.

Making use of seasoned deal professionals and advisors is therefore advisable to ensure you have the best chance of delivering a successful outcome.

What advisors you should have on board

A solicitor

Clearly when it comes to agreement of a deal which will need to be legally transcribed and enforceable, a solicitor of adequate standing and experience will be required. Making use of specialists who are well versed in this field is recommended. Having someone who understands the requirements is always advantageous and can mitigate the risk of items and agreements being incorrectly entered.

Tax support

In addition, tax advice can be key as tax will inevitably need consideration in terms of the applicable treatments and timing of payments. Making sure capital is deemed as such is an obvious area where accuracy is crucial. A tax advisor with a detailed knowledge of how and what to present to HMRC is a major requirement for transacting parties.

Corporate finance specialists

Similarly, and often overlooked, is the use of corporate finance specialists who ideally should be involved well in advance of any transaction. Not only will this allow for better positioning to derive maximum value, but experts in this area will consider who to transact with and how a structured approach could work without exposing either party to an undue level of risk.

Knowing who to approach and how is another important part of the corporate finance advisor offering. An experienced advisor can make a substantial difference whilst also protecting shareholders, management teams and the related funders.

Also, when it comes to due diligence, a corporate finance specialist will help to explain what it truly is and what constitutes key information. This will be undertaken with confidentiality, commercial sensitivity, and the capacity of all stakeholders being handled efficiently.

Brokers

Brokers and business transfer agents may also have a role to play. When considering each it will be imperative to consider exactly what they will and will not do as part of a process. Reaching out to active advisors, with proven credentials evidenced via deal statistics and client testimonials, is always going to help. The advice would be to use the experts and ensure those engaged are done so on a transparent and fair basis free from any future conflict of interest.

We are here to help

If you are considering a part sale or full sale in the short to medium term, or have been approached by a buyer already, we can assist. Please get in touch with a member of our specialist Corporate Finance team or your usual Azets advisor to discuss.