BUYING A BUSINESS FAQS

SELLING A BUSINESS FAQS

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BUYING A BUSINESS - FREQUENTLY ASKED QUESTIONS

  • What sort of insurance do I need?

    If your recruitment agency will be placing contractors, to ensure liability can be passed down you must possess matching insurance to your contractors. This will include professional indemnity insurance, public liability insurance, employers’ liability insurance and cyber & data risks insurance.

  • What sort of licences do I need?

    Most recruitment agencies will not require any licenses, however if your agency supplies employees to a selection of specialist industries then a license will need to be attained. Supplying labour to the following industries will require a GLAA licence: food processing & packaging, agriculture, horticulture, and shellfish gathering. Further, if you supply registered nurses then it may be necessary to register with the Regulation and Quality Improvement Authority.

  • How long does it take to buy a business?

    This time will vary greatly depending on the business. There are multiple factors to consider; whether your offer will be accepted, whether you have the right sort of solicitor, and how long the Due Diligence process will take. We advise purchasers on every single step they can take to speed up the process.

  • Will there be a handover period?

    Some vendors may stipulate an ‘earn out’ period as a part of their stability measures during the transition of ownership, this can be enacted for upwards of 12 months and is ultimately up to the vendors discretion.

  • What regulation must I comply with when purchasing a recruitment agency?

    You must ensure you comply with the legislation set out in the Agency Workers Regulations 2010.

SELLING A BUSINESS - FREQUENTLY ASKED QUESTIONS

  • How important is confidentiality?

    Confidentiality is vital to maintain the level of staff and client retention throughout the sales process, with the majority of our clients opting for a confidential sale. 

  • What will be involved in the due diligence process for my recruitment agency?

    The purchaser will need to carry out legal and financial compliance.

  • What documentation would a potential buyer want to see?

    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.

  • Do I need to provide a handover period?

    Depending on how specialist your recruitment agency is, it may be appropriate to provide a handover period.

  • Is my recruitment agency large enough to be placed on the market?

    Following our extensive market analysis, we have determined that active buyers within the market are looking for practices with an annual turnover of at least £250,000 per annum and at least 2 partners or directors.