The process of selling a company

 

The traditional/usual steps involved in selling a company are as follows:


  • Groom the company for sale and clean up the balance sheet.
  •  Finalise the completion balance sheet and the adjusted EBITDA
  • Fix the asking price based on the balance sheet and adjusted EBITDA.
  • Draft and issue the sales memorandum.
  • Deal with purchaser enquiries.
  • Ensure that purchasers have funding capability.
  • Obtain offers.
  • Accept an offer.
  • Negotiate and agree heads of terms (HoT) between purchaser and vendor.
  • Agree a timetable for completion.
  • Purchasers begin commercial and legal due diligence.
  • Purchasers begin accounting due diligence.
  • Purchasers’ solicitors issue draft share purchase agreement (SPA).
  • The terms of the SPA are negotiated and agreed, it includes vendor warranties, TUPE obligations; tax deed – warranties and indemnities, payment terms, including any escrow payments or deferred payments, earn-outs etc.
  • Remove personal guarantees with bank; obtain bank’s approval to sale if required.
  • Exchange and completion of the agreement are usually simultaneous, primarily because the trading of the company is a moving target and the warranties and completion accounts are only valid and applicable at the time of completion.
Our Recent Sales
  • Manufacture & Ecommerce- Diamante & Silver Jewellery SoLd
    Sector: Manufacturing and Engineering
    Location: Relocatable

    " This support was very much needed during what is a stressful time for anyone selling a business. I have no hesitation in recommending this company to assist with the sale of a business.

  • Toolmaking and Precision Engineering Company
    Sector: Manufacturing and Engineering
    Location: East Anglia

    " We conducted a research strategy which targeted businesses within the engineering industry to find a buyer that had good knowledge of the precision engineering sector and ready to grow a business to the next level.

  • Traditional Retail & Catering Family Butchers
    Sector: Food Retailing
    Location: Cambridgeshire

    " A very specific deal structure was required to meet the needs of the seller and purchaser and took the effort and coordination of seven different parties to successfully complete the transaction. The acquirer wrote “Many thanks for all your help! And for bearing with me!”

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