Selling your business

Selling a business involves several important business and taxdecisions. The most important are

Valuation. Valuing businesses is complex and needs expert advice. It may mean using benchmarks from comparable busiensses in the same sector.

Timing

This is important both to

  • get a good price
  • maximise tax reliefs e.g. retirement relief

Company sales involve other decisions

  • Sell shares or sell assets?
  • What to do with company property?

Shares vs Assets

Selling shares is simpler for the seller. It may also enable CGT deferral via share for share sales.

Purchasers prefer to buy assets as there is less risk of hidden liabilities e.g. revenue audits. To get a sharesale you will have to give tax indeminities.

Property

Even at today’s lower values company premises may have a high value. They may not interest the purchaser, for example in a management buyout. They also have a stamp duty cost to the buyer.

It may be worth restructuring to remove them from the sale.

The many issues in a company sale mean you should consult professional tax advice

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