You want to sell your business but there’s a legal issue that hasn’t been resolved. Maybe there’s an outstanding dispute with an employee, you’re in breach of a term in your lease, or you’ve had a claim for infringement of someone else’s intellectual property rights. Perhaps there is an escalating disagreement between shareholders. Maybe you know that some of the contractual documentation you have with your suppliers is, shall we say, not quite up to scratch.
When faced with a legal issue or problem as a business owner you have choices:
Ignore, Pray, Worry
Keep your head buried in the sand, it might just go away
Act , but DIY
Surely you could work this out yourself …
Contact an Expert
The law of averages says that your luck will run out eventually. You may have got away with making the first two choices for months or years. But in the long run contacting an expert should be what a successful entrepreneur does automatically.
Now, you’re thinking this is the expensive option. You’re going to be paying fat-cat lawyers, accountants, consultants to tell you what you already know. Their fees are going to outweigh the benefit 10x. Well, I don’t believe that is the way you should be thinking about the expert. Or, at least, that’s not how we think. Your business lawyer should be honest and straight with you and their costs should be transparent.
So if it’s a legal claim you’re dealing with, the cost benefit analysis should be done right at the outset – and don’t just count the £££ cost, factor in management time and opportunity cost too. The same argument applies to other areas of your business. Proactive, well-delivered and executed advice on restructuring a group, new investment or a revised finance package, or on implementing correct contractual documentation (not just small print for small print’s sake!) can save your business £1,000s or £10,000s.
Ask any business agent what adds 10-30% to a business’ value and the ease with which it can be sold and exited – tidying up your legal documents and processes will feature at the top of their list.
So, if you haven’t yet considered how you will exit your business, or considered a legal audit of your business’ needs, I would encourage you to do so.
Make a free business enquiry
The sooner we become involved in the process of helping you to sell your business the more likely it is that your sale will be successful, so please contact us today. Call us on 01624 665522 or complete our free online enquiry form and we will be in touch as soon as we can. Our full contact details can be found on our Contact Us page.
Lorcan is the Head of Business at Quinn Legal
Click his photo below to find out more!