How Solicitors Can Help The Sale Of Your Business
Solicitors play a crucial role in facilitating and ensuring a smooth business sale. Selling a business involves careful planning, preparation, and execution, so taking time to understand how the process works can be valuable. At Mackenzie Jones, we offer over three decades of combined expertise and experience to help you navigate the complexities of business sales.
In this article we discuss the key stages that a solicitor can help you during this process.
Due Diligence
Our legal team would deal with legal due diligence enquiries which are often raised by a buyer’s legal team to identify any existing or potential legal issues associated with the business. This includes reviewing contracts, agreements, litigation history, intellectual property rights, and compliance with regulations specific to your business sector.
Sale Agreement
Our legal team would then deal with the negotiation of the suitable contract for sale to put into place the terms that have been agreed including any matters relating to the transfer of any properties or leases that are part of the deal. Once all due diligence enquiries have been dealt with and the terms of the Contract for Sale are agreed, we would then take matters forward to exchange of contracts and formal completion when the transfer of your business would take place.
Warranties
Our legal team will also review certain contractual terms known as “Warranties” that the buyers will request be included in the Contract for Sale. We would run through each of these warranties to ensure that you can either comply with them or whether they need to be struck out or limited by reference to disclosures which would need to be included in a Disclosure Letter.
Ensuring Compliance
Business sales often involve compliance with various legal and regulatory requirements. We will ensure that the transaction complies with local and industry-specific regulations, avoiding any legal complications post-sale. If the sale requires regulatory approvals, we can guide the parties through the approval process and ensure that all necessary permissions are obtained.
Handling Funds
Our team will handle the funds during a business sale. We can set up and manage an escrow account to hold the purchase price until all conditions of the sale are met. We would deal with the payment of any agent’s fees and the repayment of any mortgages that would need to be repaid from the proceeds of sale.
We will ensure that payments are made in accordance with the agreed-upon terms and conditions and can also oversee the transfer of funds and assets between the parties.
Closing The Deal
We will coordinate the closing process, ensuring that all necessary documents are executed and delivered. Our team will work alongside other professionals, such as accountants and tax advisors, to finalise the financial aspects of the transaction.
Post-Closing Matters
In the period following the sale, we will assist in resolving any issues that arise, ensuring that both parties fulfil their post-closing obligations. Our team can also help in organising and maintaining proper documentation, which is crucial for any potential future legal inquiries or disputes.
Engaging experienced solicitors in a business sale is an investment to safeguard the interests of all parties involved and to ensure that the transaction adheres to legal standards and requirements.
If you need any legal advice please get in touch.
This information reflects our current understanding which could be subject to change. This does not constitute legal advice.
