This time will vary greatly depending on the business. There are multiple factors to consider; how readily available you are to conduct viewings of your business, the market, the locality, whether you have the right sort of solicitor, and how long the Due Diligence process will take. We advise sellers on every step they can take to speed up the process.
Confidentiality is vital to maintain the level of staff and client retention throughout the sales process, with most of our clients opting for a confidential sale.
One of our experienced Associate Directors will pay you and your business a polite visit and conduct a business appraisal. It is in this appraisal where the fundamental details of the sale will be agreed, such as the tenure. During this appraisal, the Associate Director will conduct a market appraisal for your business, and a guide price will be set. This appraisal will be based on both the details of the business, and the current market climate.
The buyer will need to carry out legal, commercial and financial due diligence.
If you own the freehold for your business premises you will have the option to include the bricks and mortar value of your premises within the asking price, or you can choose to retain ownership of the premises and create a lease agreement with the incoming owners, providing you with future rental income. If you currently lease your business premises, you will need to transfer your lease agreement to any incoming owner.
Selling a profitable business is an attractive proposition for a buyer. However, buyers are more interested in looking at net profit rather than gross profit. If you are looking at maximising your business sale profits, find practical ways of enhancing your business profitability by either adding to income or reducing costs, or ideally both.
A potential buyer will more than likely want to view your past 3 years of full trading accounts and a comprehensive asset list, in addition to copies of any relevant insurance certificates and licences. There may be additional requirements which we can provide guidance upon.
Depending on how specialist your business is, it may be appropriate to provide a handover period. The seller is asked to stay on as a consultant to help with the transfer. Management and introduction to current clientele base.