By Ben Ironmonger, Head of Company and Commercial, Scott Bailey LLP
Buying or selling a business is a significant step that requires careful planning. As a company and commercial solicitor at Scott Bailey LLP, I often work with clients trying to navigate the complexities of these transactions. Ensuring that every important legal aspect is addressed is vital to protecting your interests and securing a successful outcome, and we can certainly help with that.
Whether you are looking to expand by acquiring an established business, or preparing to sell the company you have built, there are many factors to consider. Whilst buying an existing business can offer distinct advantages, saving you the time, stress and effort of starting from scratch, there are still plenty pitfalls to avoid. Similarly, selling your business requires careful preparation to help you maximise its value, whilst also limiting your post completion liability.
Whatever side of the transaction you are on, my team at Scott Bailey LLP can help you navigate the process with confidence.
An established business may often come with:
- Commercial premises or property already in place.
- A trained and experienced workforce.
- A loyal customer base and existing revenue streams.
- An established business model and operational systems.
These benefits mean you can step into a fully functioning operation, saving you the time, effort, and challenges of building from the ground up, but it also means there is a lot to consider, investigate, and protect against as part of the transaction.
Easier Access to Business Finance
Securing finance to buy an established business can often be simpler than financing a start-up. Banks and investors are typically more willing to support acquisitions with a proven track record of profitability. Having access to historical financial data provides reassurance to lenders, helping you secure the funding you need. Our
Strategic Advantages for Business Buyers
Buying an existing business or company isn’t just about taking over—it’s about creating new opportunities. Acquiring a business allows you to:
- Expand into new markets or geographical areas.
- Reduce competition by acquiring a rival.
- Add complementary products or services to your portfolio.
- Strengthen your market position and increase profitability.
Whether you’re an experienced business owner or exploring your first acquisition, these benefits make buying an established business a powerful strategy for growth.
Selling a Business: Why Buyers Are Looking
If you’re thinking about selling your business, understanding what buyers are looking for can maximise your sale value. Buyers are often attracted to:
- Businesses with a strong and loyal customer base.
- Profitable companies with a clear financial history.
- Businesses with robust systems, including IT and infrastructure.
- Companies in growing or stable industries.
Preparing your business for sale involves making it as attractive as possible to potential buyers. From financial health to operational readiness, every detail counts. A thorough due diligence process, and a well drafted share or asset purchase agreement are key to providing you with peace of mind.
How to Find the Right Business to Buy (or Sell)
If you’re looking to buy or sell a business, opportunities are everywhere. Businesses for sale are often advertised on:
- Business broker websites.
- Online platforms specialising in business sales.
- Auction sites.
- Commercial property listings.
Traditional advertising still plays a role, with listings in newspapers, trade publications, and specialist magazines.
For sellers, working with a business broker, good accountant, and solicitor with expertise in mergers and acquisitions can help position your business to attract the right buyers. For buyers, networking is equally valuable — letting contacts in your industry know you’re in the market for an acquisition can reveal exclusive opportunities.
The Early Steps in Buying (or Selling) a Business
If you’re buying a business, start by conducting thorough due diligence. Consult your accountant to review the financials and assess the value of the business. Similarly, sellers should have a clear understanding of their company’s valuation before listing it for sale. This is where a good accountant and often a business broker can really add value.
Legal advice is essential in both scenarios. At Scott Bailey LLP, our experienced Company and Commercial solicitors support buyers and sellers alike with:
- Preparing your business for sale, ensuring you have up to date policies and procedures, employment contracts and so on all in place.
- Drafting, reviewing and negotiating heads of terms.
- Drafting and negotiating business sale agreements (whether an asset sale or a share sale).
- Managing and conducting due diligence.
- Structuring acquisitions and sales for tax efficiency in collaboration with your accountant.
- Ensuring compliance with legal and regulatory requirements.
- Limiting your liability, and reducing your stress.
Whether you’re exploring buying a business or preparing to sell your company, we can provide cost effective expert guidance every step of the way.
Why Work with Scott Bailey LLP?
When buying or selling an SME business, there are significant benefits to engaging a smaller boutique legal team like ours at Scott Bailey LLP, over larger regional or national firms. Whether it’s our down to earth and commercial approach to business, being able to easily speak with the solicitor with care of your matter, or our speed and generally lower costs.
With years of experience helping clients buy and sell businesses, we understand the complexities of business acquisitions and sales. Our goal is to ensure the process is smooth, stress-free, and tailored to your goals.
Call our company and commercial team today on 01590 676933 or email me directly at [email protected] for a fixed fee quote and to discuss how we can assist with the sale or purchase of your business. Alternatively you can view more of our corporate and commercial legal services here.
