I am selling my business. What should I do?
Pricing a business can be something of a “dark art” and it is advisable to seek advice from an expert.
Once an agreement has been reached with a buyer, it is helpful for a “heads of terms” to be produced setting out the key terms of the sale as this will save time as the sale progresses and the more substantial documents are negotiated and agreed.
The buyer will usually then raise a number of legal and financial due diligence enquiries to confirm that the agreed purchase price for the company represents its value and also to obtain more detailed information about the company before proceeding any further with the transaction.
Once the due diligence process has been completed, the business sale agreement will be negotiated and agreed. This will be done by both your and the buyer’s solicitors. There will also be a number of ancillary documents required such as a disclosure letter, board minutes and resolutions and share transfers. Whilst the business sale agreement is the main document, these ancillary documents are necessary to ensure compliance with company law.