Business and franchise sale
Selling a business effectively is all about planning. The earlier you understand the things to be considered, and start dealing with them, the less time you waste trying to stop things going off the rails. Remember that a business is simply the basket of assets that the owner uses to make revenue and each of those assets has to be part of the sale. If the sale of an ordinary business is not complicated enough, the sale of a franchise adds the extra complication of the franchisor. Planning is essential to avoid disappointment and delay.
Business succession planning
Who will run the business once the current owners want to withdraw? Sure, you may be able to sell it, but will that result in the best outcome? Is it truly saleable anyway? And would a sale be the right thing for your long-serving staff or any family members who work in the business? True, business succession looks at all these issues and designs the business with an eye to the current owners exit.
Closing the business
There may come a time when the business must be closed. Closure of a business can be voluntary, where the owner decides to shut the doors and takes the necessary steps and advice, or involuntary, where a creditor appoints a liquidator or receiver to deal with the business assets. Either way the steps are the same: identify all assets, realise their value, pay off all creditors, distribute the excess to the owner. Simple to state ... but so much more complex in practice.
Co-owners of a business fall out for many reasons: personality conflicts, changes in personal circumstances, disagreements over the future direction of the business, unexpected offers from third parties. It’s amazing how often a co-owner who wants to get out thinks they can simply pack up their desk, leaving the remaining co-owners with the debts, staff, lease, overdraft and other liabilities. Co-owners should have a good agreement to begin with, but if they don’t or if there is disagreement about how it is to operate then good advice and representation is vital.
Insolvency is of itself not necessarily the end of the road but must be handled very carefully to make sure it doesn’t lead that way. Negotiation, debt management and administration are just a few of the ways that insolvency can be handled before it gets to the point of ending the business. You’ll need good legal advice with plenty of commercial savvy thrown in.
If liquidation of the business is the only way then you’ll need to help to monitor the liquidation, to deal with the bullying from the liquidator, to defend any claims of wrong-doing, and to protect your personal assets.
Selling your business
Your business may be your most valuable asset – even more valuable than your home. When it’s time to sell it you will want to ensure that nothing goes wrong and that you get the best outcome you can. There is much to consider so read our Advice Guides “Selling your Business” and “Buying or selling a business” and let us help you to negotiate the right deal and protect that valuable asset and the money you make from selling it.