Selling Your Business: What Are Your Responsibilities?

Selling a business involves more than finding a buyer and agreeing on a price. As the business owner, there are a number of responsibilities you need to consider throughout the sales process.

Understanding what is expected of you can help make the transaction smoother and avoid unnecessary delays.

Providing Accurate Information

One of your main responsibilities when selling a business is providing accurate and up-to-date information about the company.

Potential buyers will want to understand the financial performance, assets, customers, employees and general operation of the business.

You should be prepared to provide relevant accounts, financial information, contracts, leases and other important business documents when requested.

Being Open About The Business

It is important to be transparent about any issues that could affect the sale.

This might include outstanding liabilities, disputes, significant customer changes, property issues or other matters that a buyer would reasonably expect to know about.

Being open from the beginning can help prevent problems further down the line and give potential buyers confidence in the information they are receiving.

Continuing To Run The Business

Until the sale has completed, you remain responsible for running your business.

This means maintaining normal operations, looking after customers and employees and continuing to manage the company's finances.

It is important not to let performance decline simply because you have decided to sell. A buyer will generally want to see that the business continues to perform during the sales process.

Maintaining Confidentiality

Confidentiality can be particularly important when selling a business.

You may not want employees, customers, suppliers or competitors to know that the business is for sale until the appropriate time.

Working with an experienced business sales agent can help ensure information is provided to genuine prospective buyers in a controlled and confidential manner.

Cooperating With The Buyer

Once a serious buyer has been identified, they may want to carry out due diligence before completing the purchase.

This can involve reviewing financial records, contracts, assets, employees, property and other aspects of the business.

Providing the requested information promptly can help keep the sale moving and reduce unnecessary delays.

Taking Professional Advice

Selling a business can involve financial, legal and tax considerations, so getting appropriate professional advice is important.

Your accountant, solicitor and business sales agent can each play an important role in helping you understand your responsibilities and complete the transaction correctly.

Agreeing The Terms Of The Sale

The sale price is only one part of a business transaction.

Other terms may include payment arrangements, completion dates, assets included in the sale and any arrangements for your involvement after completion.

Make sure you understand the terms being agreed before committing to the transaction.

What Happens After The Sale?

Your responsibilities don't necessarily end the moment a buyer is found.

Depending on the terms of the agreement, you may need to assist with the handover of the business, introduce the buyer to key customers or suppliers, or provide a period of support after completion.

These arrangements should be agreed clearly as part of the sale.

How Parker Barras Can Help

Selling a business can be a complicated process, but you don't have to manage it alone.

Parker Barras can help business owners understand the sales process, value their business, market it confidentially and manage enquiries from potential buyers.

If you're considering selling your business, start with a free, confidential and no-obligation business valuation from Parker Barras.

Contact Parker Barras today to discuss selling your business.