Orr Litchfield
Solicitors and Business Lawyers
Solicitors and Business Lawyers
There are numerous different reasons why people cease to own and/or manage their business or company just as there are many different reasons why people start to run or become involved in the ownership or management of a business or company.
Whether you own a business as an individual, as part of partnership or through a company (or otherwise) it is inevitable that, at some point in time, you will have to transfer the ownership of or sell your business (and/or its assets) or sell your shares in your company.
If you are selling your business or company then, in order to maximise the value on the sale of your business or shares, you need to be in control of the process from start to finish. This requires detailed thought and planning. The earlier you start the business sale or company sale planning process, the better your chances of getting more value and reducing your risks.
The majority of business owners only ever sell a business or company once. Whilst they may have years of experience starting, developing and managing a business and may have had the opportunity to learn from their own mistakes over time, it is unlikely that they will have any (or any significant) experience of the task of selling a business. In addition, they are unlikely to have the opportunity to learn from mistakes in selling their business unless they are a serial entrepreneur or investor. However, it is likely to be one of the most difficult challenges that a business owner will ever encounter.
Orr Litchfield Solicitors can help you prepare for the sale of your business or company and guide you through the sale process in order to help you realise the best possible outcome for you and any others for whom you wish to provide or whose interests you wish to protect.
There are many ways in which business owners can exit their businesses. The most common methods are:
(a) Company share sales,
(b) Business sales (as a going concern), and
(c) Asset sales.
Where the business is owned through a company structure, each of the shareholders will own shares in the company. The company will own the business and its assets. Some or all of the shareholders may sell their shares to other individuals and/or companies (or other legal entities).
The business and its assets will continue to be owned by the company whose shares are being sold.
You can read more about selling shares in a company on our webpage on Share Purchases & Sales.
Where there is no company structure (for example, where the business is owned by a sole trader or partnership), the business owner(s) may sell their business as a going concern together with all or some of the assets of the business. Alternatively, where there is a company structure, the company may sell its business (and all or some of the assets of the business) rather than the shareholders selling their shares in the company.
You can read more about selling a business as a going concern on our webpage on Business & Asset Purchases & Sales
Rather than selling the business as a going concern, the business owners may sell some or all of the assets of the business (for example, intellectual property) rather than the business as a going concern.
You can read more about selling the assets of a business on our webpage on Business & Asset Purchases & Sales.
You may also be interested in the following articles on selling a business or company by Orr Litchfield Solicitors:
(a) Preparing your business for sale - When should you sell your business?
(b) Preparing your business for sale - Business sale objectives and goals
(c) Preparing your business for sale - Fine-tuning your business to maximise price and minimise risk
(d) Preparing your business for sale - Are you ready for buyer due-diligence?
(e) What is your exit strategy?
(f) Preparing your business for sale - Who will buy your business?
If you would like more information about selling a business or company or would like to discuss a potential or existing business or company share sale, please contact us by telephone on +44 (0)20 3126 4520 or +45 38 88 16 00 or by email at enquiries@orrlitchfield.com or complete an Enquiry Form.
