The Importance of Early Legal Advice When Selling Your Business

I recently attended a seminar hosted by the Shropshire Chamber of Commerce entitled “Time to Sell Up?” It focused upon when and how people should sell their businesses. It provided a useful insight in to the lengthy process a seller must endure before they even think of entering the door of their solicitor’s office. This includes valuing the business, arranging to meet potential buyers and drafting information flyers or promotional documentation for buyers etc.
However, sellers will often find they are asked to enter in to various legal arrangements at preliminary stages of the transaction, well before the final sale is due to take place. These can include, for example, a non-disclosure agreement before negotiations take place or heads of terms to establish the key terms of the sale and purchase of the business.
The general consensus amongst attendees of the seminar was that it was prudent for sellers, and buyers alike, to involve their accountants and solicitors as early as possible to avoid delays and frustrations arising. This is particularly important with regards the preparation of the heads of terms, which if not properly considered from a legal perspective could lead to serious complications down the line, even leading to the deal falling through.
If you would like advice regarding the sale or purchase of a business, contact our Commercial Property team on 01743 280280 or email