Have You Considered Why You Are Selling Your Business?
Over many years, our Taxperts have assisted hundreds of people in realising the full value for their business. Whilst the objective is often straightforward, and the desired outcome clear, there are a series of factors that should be considered in any sale.
Over the next few months, our Transaction Tax team, in association with our specialist Corporate Finance team, will cover a range of topics designed to capture the key issues in selling your business.
We aim to be thought provoking, challenging you to consider your options whilst providing advice with our practical, yet insightful approach.
Our first topic is set out below.
Why are you selling your business?
There are many motives for selling a business which can range from a forced sale due to financial distress to simply receiving an offer that you cannot refuse.
In making the decision to sell, many of the factors are not financial in nature, for example:
- Have you had enough of running the business?
- Is ill health the main reason?
- Are you the wrong person to lead the business?
- Are there no family members to pass the business on to?
Whilst personal factors will often help a business owner make their mind up, the financial outcome is normally one of the primary factors considered by the owner.
What is our role?
We act as lead advisor to most of our clients and, initially, our job is to challenge the owners as to whether they are sure they wish to sell. Owners can sometimes sell their business without a clear agenda, but we will get to the root source by asking the blunt question, “why do you want to sell?”.
By knowing the motives behind a sale this ensures that we can provide appropriate tax advice and ensure that where possible any tax risks and liabilities can be minimised.
If you are thinking of selling your business and would like to discuss matters with sector leading experts, then please contact our Transaction Tax team today.