Selling up, how to.
Discussion
Hi everyone, small business owner here, I'm looking to sell up in the next 6 months but haven't really got a clue where to begin.
Been running 15 yrs, 8 staff, 600-700k turnover a yr, no debt at all, 200k of assets, made a profit every yr of trading.
I also own the building we trade from outright, but that wouldn't be included, in an ideal world the company would continue to rent from myself.
So, is it a case of trying the usual business for sale.com and other such sites, or is there another way.
Based in north essex if that matters. And I presume I'll get clobbered paying tax on the sale price.
Any advice welcome, thanks.
Been running 15 yrs, 8 staff, 600-700k turnover a yr, no debt at all, 200k of assets, made a profit every yr of trading.
I also own the building we trade from outright, but that wouldn't be included, in an ideal world the company would continue to rent from myself.
So, is it a case of trying the usual business for sale.com and other such sites, or is there another way.
Based in north essex if that matters. And I presume I'll get clobbered paying tax on the sale price.
Any advice welcome, thanks.
The cheapest way to do it (excluding any tax dodges) is just to list all your main competitors in the UK or within a 50-mile radius (or whatever), work out which are the top 10 with the deepest pockets, and ring up their owner or CEO or CFO (or whatever) and ask if they wanna buy it.
XMT said:
Frimley111R said:
Sent you a PM. Do not DIY your business sale.
Frimley111R it would be great if you could give some information here regarding selling a business. I am in a similar boat all be it the business has been up and running for 4 years with a similar turnover and 1 staff. Yipper said:
The cheapest way to do it (excluding any tax dodges) is just to list all your main competitors in the UK or within a 50-mile radius (or whatever), work out which are the top 10 with the deepest pockets, and ring up their owner or CEO or CFO (or whatever) and ask if they wanna buy it.
+1, but would add, consider whether your suppliers or customers may value your business too.If you go down the more 'corporate' route to disposal, Luke Johnson's column in the most recent Sunday Times gave a overview of the sales process in terms of what documents you need to produce, timing, outline costs of disposal etc.
Also, don't pay any agencies or advisers in advance. There are plenty of people who will promise to see your business for megabucks in exchange for a pile of fees that don't result in a sale.
I have a friend who started an online business a while back and it was unexpectedly successful.
He got to a crossroads with it where he could either pursue what he really wanted to do, or make a full-time go of this business.
He chose to sell it and focus on his real passion (which he's doing very well with now)
Anyhow, he contacted some competitors and set about selling it.
Long story short, he quite sizeably undervalued what he had - partly through inexperience and partly through the other company downplaying it. He wound up selling for a decent amount, but less than what he could have got.
It's hard to value your own business so, moral of the story - contact a person who values businesses professionally and get them to do the numbers. Then make it known that you want to sell.
He got to a crossroads with it where he could either pursue what he really wanted to do, or make a full-time go of this business.
He chose to sell it and focus on his real passion (which he's doing very well with now)
Anyhow, he contacted some competitors and set about selling it.
Long story short, he quite sizeably undervalued what he had - partly through inexperience and partly through the other company downplaying it. He wound up selling for a decent amount, but less than what he could have got.
It's hard to value your own business so, moral of the story - contact a person who values businesses professionally and get them to do the numbers. Then make it known that you want to sell.
drainbrain said:
Sold two recently. One to the 40% shareholder (I was the 60%) who continues as my tenant, and one to a competitor who took over the leases of rented premises.
Delighted with terms of both, as were the buyers. No lawyers, no agents, no fees, no problems.
Its £10m allowance in your lifetimeDelighted with terms of both, as were the buyers. No lawyers, no agents, no fees, no problems.
Delboylee said:
Correct. £10m lifetime allowance for the ER capital gains tax rate of 10% if you qualify. The building is an interesting one, if you sell this at the ‘same time’ as your business you’ll also have to only pay 10% capital gains tax (look up associated disposals for ER purposes).
Correct. And receiving a market rent means the building will not qualify for ER unless it is sold at the same time is the business. Any gain will instead, be taxed at 20% based on current tax rates. Gassing Station | Business | Top of Page | What's New | My Stuff