By the same token, buying a business requires just as much care and thought so as to avoid inadvertently buying unknown liabilities and to ensure that you have the best possible chance of success with your new business.
This article is intended to give a brief outline of the overall structure involved in selling or acquiring a business.
Here is the basic order of processes involved in a sale/acquisition of a business:
First off, the buyer and seller both instruct their advisers as to what they are looking for from the sale/acquisition.
A Heads of Terms and Confidentiality Agreement is then drawn up which both parties have to agree on.
The buyer can then make whatever enquiries he likes, these are known as due diligence enquiries, and the seller is obliged to reply.
The buyer will then draw up an Acquisition agreement and the sellers create a disclosure letter.
Both parties will then need to agree to each other’s terms as written in the above mentioned documents (or compromise until an agreement can be reached) and then exchange copies of the documents.
The only thing left at this point is the actual implementation of change of ownership, and after that it’s just a case of carrying out any pre-agreed post completion actions.
Just a quick reminder that GLM Financial can help both Buyers and Sellers Prepare.