4. Risk Management
Business risk comes in many forms — such as leadership changes, financial challenges, market shifts, supplier or customer issues, tax, and regulatory concerns. A comprehensive risk register, assessing both probability and impact alongside mitigation strategies, is crucial in the sales process.
Demonstrating how these risks could affect your business and the steps taken to reduce their impact, including solutions like specialist insurance, strengthens your position. Our financial planners can advise on cost effective structures to make risk management as smooth as possible.
5. Prepare For The Due Diligence
It’s important to ensure you have relevant documentation, including incorporation papers, share certificates, property deeds, contracts, and intellectual property records, all updated for due diligence. Resolve any litigation beforehand, as unresolved disputes can create uncertainty and affect the sale price. Our financial planners can advise on strategies to minimise this impact and help you achieve a successful sale.
6. Consider Your Personal Tax And Financial Considerations
When selling your business, consider both personal and business financial planning to ensure surplus cash is managed tax-efficiently, balancing reinvestment needs with your personal goals.
Our dedicated financial planners can help you navigate complexities, including Capital Gains Tax (CGT) and reliefs such as Business Asset Disposal Relief (BADR), ensuring your business sale supports your long-term goals.
7. Don’t Leave It Too Late
Regarding tax reduction, it’s important to recognise that last-minute pre-sale planning is unlikely to provide substantial savings. Strategic tax planning should be implemented ahead of time, ideally as part of your ‘readiness for sale’ strategy.
