When you register a limited company at Companies House, the business becomes a legal entity. Therefore it can be sold just like any other form of property. Unless the business is dissolved, it will continue to exist regardless of what the owners do. If you are the sole director of a company, then you can sell it on your own. However, if your business has shareholders, you will need their permission before doing so.
Business Evaluation
If you intend to sell your business, it’s vital that you know exactly what the business is worth. You need to think about the profitability of the business, it’s reputation, the sales history, the forecast of future earnings, and the potential risks to the buyer. It’s important to get an expert to value your business so that you know you won’t be underselling yourself.
Be Prepared
Before selling your business, you should ensure that everything is in good order. Make sure that all of your contracts are set out and organised, and try to sell the company when it has a steady cash flow. Think about how to attract potential buyers, and think about the questions they may want to ask you.
Giving Notice
If you decide to sell your business, you need to notify Companies House. You should update the details of the new directors, and also set the date of the handover. You should also inform HMRC for self-assessment and national insurance purposes. If your company is VAT registered, you should also transfer the VAT registration number to the new owner.
Professional Help
An accountant can provide you with a business evaluation, and they can also help you with your exit strategy. Selling a business is not a simple process, and the last thing you want to do is lose money, so doing everything the right way is vital. Never work with guesses or estimations. Your business is precious, so you should handle it with care.
If you are thinking about selling your business, but you are unsure of how to go about it, get in touch today to see what we can do for you. It may be an emotional time, but it doesn’t have to be a stressful one, especially not when you leave it to the experts.