Warwickshire business owners seeking to make the most of years
of hard work by selling up could be at risk of falling at the final
hurdle, deal-making lawyers at Lodders Solicitors are warning.
Kim Beddows, a solicitor in the firm's Business Group in
Stratford-upon-Avon, said that too many business owners failed to
make the most of a once-in-a-lifetime opportunity to cash in
because they had not got their company paperwork up to date.
"When you are putting a deal together, there are so many
elements that have to fit into place like a really complex jigsaw.
If important paperwork is not up to date or in place, it can be
just the excuse a potential purchaser needs to walk away or ask for
a significant reduction in the purchase price," she said.
She stressed that business owners should check that vital
documents like the Memorandum and Articles of Association,
shareholders' agreement and contracts of employment, especially for
senior management and vital staff, were all up to date.
"In many businesses it is not just the order book and customers
that you have that are the value of the business, it is also the
senior staff, especially sales personnel, who drive the business on
a day to day basis.
"When the upturn comes many companies will seek to expand
through acquisition just as some directors seek to sell to realise
the benefits of what could be a lifetime's hard work," he said.
"If they have not put the right planning in place, ensuring that
all important agreements and company documents are up to date, then
a lot of hard work can be wasted and hopes dashed - often
unnecessarily."
Lodders, which has offices in Stratford-upon-Avon and
Henley-in-Arden in Warwickshire and Cirencester in Gloucester, said
that would-be sellers should contact their corporate department for
a pre-sale audit.
"If you are interested in selling your business and maximising
the return, then you owe it to yourself to make sure you are in a
position to proceed if you find a buyer," said Miss Beddows.
For more information about Lodders, please visit their website
here: www.lodders.co.uk