Business Sales
Selling a business can be a challenging, stressful, and time-consuming process. That’s why it’s important to seek professional finance advice for a business sale from our chartered accountants.
Get StartedWhy use accountants when you sell your business?
You might be selling your business with the intention of retiring and living off the proceeds from the sale. If this is the case, it is essential that you are careful and maximise the money you receive in the deal with the help of specialist accountants as it could be your last opportunity to add to your retirement fund. For example, it would be devastating to find out after completion that you aren’t eligible for Business Asset Disposal Relief because of the structure of the deal, potentially leading to your effective rate of tax possibly doubling.
Alternatively, you could be a serial entrepreneur selling one of your many businesses with the goal of starting a new venture. Even the most experienced entrepreneurs need an expert in their corner to make sure their tax position has been properly considered during negotiations, as the tax considerations here are typically much more complicated and tax at stake far greater.
What is the process of selling a business?
There are several important steps involved when it comes to selling your business and as your business sale advisor, we’re here to help you with the following:
- Exit planning – understanding your objectives and goals for the future and advising you on the options available to you when you leave the business. This can include succession planning or the sale of the business.
- Getting your business ready for sale – effective accounting services that will improve your reporting, systemising your business before the sale or recommending ways to increase its value ready to be sold.
- Valuing the business – giving you a realistic valuation of your business based on our methodology and research of similar business sales in your industry.
- Corporate finance support – helping you at every stage of your sale from confidential negotiations with potential buyers to advising on your sale agreement.
- Tax guidance – as well getting specialist advice to achieve your objectives we can also provide assistance in relation to available tax reliefs like the above-mentioned Business Asset Disposal Relief. This can lower the Capital Gains Tax on your sale to 10% on qualifying assets (normally it would be 18% or 28%).
How we can help you
Jan McDermott Chartered Accountants specialise in all areas of accountancy and tax support for businesses including business sale advice. Our team of skilled accountants will help you throughout the entire process, ensuring you achieve the best outcome. We will use our expertise to not only get you the best possible price for your business, but also support you with all the legalities, tax, and general paperwork that is required to help you make a smooth transition out of the business.
Get in touch with our specialists today to guarantee a successful business sale today.
Frequently Asked Questions
When you start the actual sale process itself, you will need to identify and draw in potential buyers. This could take anything from a few weeks to multiple months. The other main phase of the sale is negotiating and completing. It is likely that this will take at least a month, but it can take a lot longer. Negotiations and due diligence take up the majority of this time, as the buyer will want to check financial and commercial information by looking over records and asking questions to ensure everything is correct and there aren’t any hidden liabilities or disputes.
Unless you have signed any agreement that says otherwise, yes. However, it’s important to think about the sale implications of any decisions you make when running the business. For example, forging long-term commitments may make your business less appealing to a buyer who wants to go in a different direction.
Your main worry might be making sure they have the finances in place to buy the business. If it is likely that any part of the purchase will be deferred, you will want to assess the creditworthiness of the buyer. Other factors you might want to consider when finding a buyer for your business include:
- What their expectations are of you e.g., whether you’re staying involved in the business and what warranties or indemnities they need.
- How they plan to run the business. For example, you might be concerned about whether any employees will be made redundant.
- The buyer’s reputation as a purchaser. If they have an unflattering reputation of being a difficult or demanding negotiator, you might prefer to find a different buyer.
Alan Robson
They provide us with a fully outsourced finance function so that our own team can focus on our business. They implemented Xero software from day one of the company meaning that we have real-time visibility of our business at all times, The monthly management accounts meetings we have with Jan really add value to decision-making and strategic planning and we wouldn’t be without them.
Peter Broxton
Their professionalism, expertise and client care are outstanding and they have supported our growing business no end. They look after everything from our bookkeeping, VAT, annual accounts, as well as claiming Research & Development tax relief, preparing budgets and forecasts and assisting with grant claims. The whole team are always responsive, friendly and reliable and we wouldn’t hesitate to recommend them to anyone looking for a trustworthy and efficient firm to look after their business finance requirements.
Scott Hackett
I moved my accounts over to Jan at the beginning of the year and have been extremely impressed with her attention to detail and precision. She’s made it easy for me to understand and manage all the key aspects of my accountancy, as well as offering useful suggestions of ways to improve and make things work more efficiently for me and my business. I’d highly recommend Jan and her team to anyone looking for professional, friendly, and reliable accountants that truly get to know you and offer a tailored service.”
Alistair Evans
Jan McDermott & Co have been our accountants for over 15 years and have not only ensured our accounting records are accurate and legal, but also provided us with first class advice to help us grow. They recommended our move to Xero accounting software which has revolutionised our business, allowing us to create predictable income through the use of Go Cardless Direct Debits, and streamlining our day to day accounting operations. Jan and her team are friendly, easy to work with and take time to understand a particular problem or situation. I wouldn’t hesitate to recommend them to any business that wants an accountancy firm they can grow with and depend on.