Whatever the reason for deciding to sell your business is, the decision is usually a difficult one usually prompted by a combination of factors ranging from market conditions, financial constraints and changes in circumstance.
In business, every now and then shutting down can be the only way out of difficulty. For example market forces or increased competition may make the business unprofitable, so a closure is required, or aggressive legal action may be taken against the business, forcing a shut down. An additional reason for example, a change of regulations that means the business is no longer a feasible one, or an unforeseen chain of events may also force the closure,
Whatever the foundation for shutting down, you may find yourself reluctant to do so, this is particularly so if the corporation was once a rewarding one. Even if the business is not cost-effective, you may be able to find some concealed worth or there may be some possible worth in the business for someone else to grasp, leading to the potential to attract an investor.
If you are seriously considering selling or closing your business then it is extremely important that all of your tax and any other official records are up to date. This is because any potential buyer will instruct their solicitor to perform a due diligence check. This check involves assembling all information concerning the business so that any likely suitor can make an educated choice and adjust any terms of sale if required.
You will need to inform HM Customs and companies’ house to determine any outstanding tax, VAT and National Insurance matters. You will also need to notify and check with the workforce or suppliers associated with the business and any employees will have to relocate over to the new company.