Time for a Spring Clean?
The advent of May traditionally brings with it some warmth (sadly missing in recent days!) and also the swish of a feather duster around the home!
Now is also a good time to consider some ‘spring cleaning’ in your business. There are some perennial issues that we come across which can be deal breakers, and all of which can typically be addressed well in advance of a sale:
Private assets in the business – this might be a house, car or even yacht! Whatever the case, you can be sure that the buyer would prefer not to buy it, so now is a good time to extract in as tax-efficient a manner as possible.
Customer and supplier contracts – these often represent a significant element of value in any deal and now is a great time to see if they are still ’fit for purpose’. Change of control clauses suddenly become much more important when considering a sale, as do early termination clauses.
Company purchase of own shares – often used as part of the process to facilitate the exit of a shareholder. The laws governing this are very specific and if not followed to the letter can render the whole transaction void, as if it had not taken place as all. The last thing you need when selling your business is for an old shareholder to come out of the woodwork – so better to check it all now.
There are many other areas that can be addressed well in advance of a sale – and we’d be happy to discuss these with you so please do contact us.
Alternatively, come along to our next Live Virtual Seminar to learn How To Get Top Value For Your Technology Business.