By Hale Jim
If you share a business with a partner and you are in the process of considering selling that business, it is important to understand the ins and outs and the processes that you will have to undertake. The first thing you should always do is consult an experience solicitor with experience in business law. Before buying or selling any business it is vital that you have legal assistance from solicitors that understand the legal detail and can advise you on the right approach to take, and whether there are any potential pitfalls to be aware of legally.
Your solicitor will be at the heart of the action from start to finish when selling a business, so it is important to choose a firm of business solicitors that you can trust, and that demonstrate competence and a clear track record of success in your field. A solicitor will be at hand during all the stages of a sale of a business, ensuring that you are fully informed of all the legal detail that you require, and ensuring that your investment is protected. Every single business sale is unique, and it is important to have legal expertise on your side to help you navigate this unique journey.
Every business sale takes as long as it takes. Each business has a unique story and sale to go through, with different challenges and complexities to work through on both the seller and buyer side of the transaction. Once the main terms of the sale have been agreed though it is usually within 4-6 weeks for the final transaction to take place. This might take longer if there are other parties involved, such as a business partner who is not selling his or her shares in the business, a landlord of business premises, or a bank.
It is also important that you understand the costs of selling a business. You’ll be required to pay legal fees, any third-party costs such as landlords’ fees, local authority searches and surveys, insurance, VAT, and any other industry specific costs.
If you are selling a business in partnership the responsibilities you have will differ depending on whether you are selling the entire business as a partnership, or if you are only looking to sell your share of the partnership. It can make things tricky at first to find a buyer to only purchase your shares in a business, or to ensure that you and your business party are both happy with the terms of a sale before completion (there might also be restrictions and conditions on a sale in your business’ partnership agreement). It is for these complications that it is imperative you find solicitors that offer expert advice and guidance on the matter of selling shares in a business partnership.
If you have any employees you are obliged to inform them about the sale of the business, as well as the dates of sale, and the reasons behind the sale. If redundancy packages or relocation packages are required these should be provided within plenty of time to all staff members. If the partnership is VAT registered you may be able to transfer the registration number over to the new owner, and a Self Assessment tax return must be completed before deadline if you are selling your share in a partnership. Always take advice of solicitors with experience in business law before selling a business you share with a partner.
