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?

    Most property services businesses will require professional indemnity insurance, public liability insurance, employers’ liability insurance and cyber & data risks insurance. Those in the industry who operate with a portfolio of properties may require property insurance as well as landlord insurance.

  • 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 regulations do I need to comply with when buying a property services business?

    If your business includes a portfolio of rent generating properties, you must inform the tenants of the change in ownership within 2 months of the sale completing.

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 most clients opting for a confidential sale.

  • What will be involved in the due diligence process for my property services business?

    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 wish to view your past 3 years of full trading accounts and a comprehensive asset list, in addition to copies of any relevant insurance certificates.

  • Do I need to provide a handover period?

    Depending on how specialist your property services business is, it may be appropriate to provide a handover period.

  • Is my property services business 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.