Professional Services for Purchasers

Whether you are researching the subject of business acquisitions, looking for business to buy, evaluating a specific business or have had an offer accepted and are proceeding with a purchase, getting the right advice and service is crucial

If you were about to spend several thousand pounds on any other goods or services you would research the options carefully, but surprisingly purchasers often give little thought to their selection of professional advisors, particularly solicitors. It cannot be stressed enough how important it is to choose your advisors carefully it could make a massive difference to the costs and your experience of the purchase.

  • An accountant - to assist you with :-

    • reviewing purchase options (e.g. should you buy the assets in your personal name or as a ltd company etc)

    • cash flow projections to ensure that you are able to support yourself in the initial years, taking into account the projected income stream from the business in relation to loan repayments and any further planned information in the business

    • due diligence

    • [Once you have acquired your business] Production of year end accounts when you take ownership of the business, and possibly book keeping and processing of VAT, tax returns and payroll. You can not always do it all and delegating these tasks in the first year will allow you to concentrate on getting to know and understand the core business.

  • A solicitor - to carry out the legal transfer of the business from you the party selling to you. On leasehold properties this will also involve transferring or assigning the lease from the seller to you.

    Many buyers and sellers automatically engage the firm who previously carried out the conveyance on their last house purchase; others shop around for the cheapest quote. Selling a business is a very different field from selling a house and opting for the cheapest quote may prove to be a false economy; solicitors generally work on a chargeable time basis and in business their quote is simply an indication of costs and very few will commit to a fixed fee. Perversely, this can mean that an inefficient solicitor may cost you more! In extreme cases a poor lawyer may cause the deal to fall through.

  • An independent valuation company (optional) - useful to provide an honest, independent and objective valuation report for a business you are considering buying. In some instances, a bank may require an independent valuation report from a specific valuation company before agreeing to funding. Where this is the case, you need to ensure that you check with the bank which companies they formally recognize.

  • Business broker / Business transfer agent (optional) - The purchase of a business can be conducted with or without an agent, but in many instances, the only way to source businesses for sale is via agencies. A professional business transfer agent will not just match the seller and buyer and negotiate the key commercial terms of the deal; they will also be heavily involved in facilitating the actual legal transaction.

    A good, knowledgeable, proactive business transfer agent can be an invaluable asset, helping to maintain confidentiality, avoid timewasters, secure the best deal for the purchaser and push the landlords, solicitors and other professional advisors to ensure that the sale completes as quickly as possible.

    A poor business transfer agent can add an unnecessary level of complexity and will add little value. Your choice of agent is therefore extremely important. We would recommend selecting an agent or broker with accreditation to the Institute of Commercial Agents (ICBA) which means that they must operate within a rigorous 'best practice' framework and must pass a series of examinations to prove technical understanding of the subject.

  • Banks & Finance brokers -