Protect Yourself From Abortive Legal Costs When Selling A Business
Anthony Gold Solicitors posts about how to avoid incurring high abortive legal and accountancy costs when selling a business.
They argue prior prepartion, due diligence on the buyer – from credit checks to asking for proof of finances – and some “pre-negotiated” documents in the form of a Heads of Terms or Memorandum of Sale.
Proof of Funds
Request proof of funds. If your buyer is a cash buyer then you should ask to see proof that the cash funds are available. Buyers often claim to be cash buyers when they are not. For example, if they need to borrow money from a friend or relative, refinance their own property, are waiting for…
Heads of Terms/Memorandum of Sale
It is important to set out the terms of the deal early on in the negotiation. Don’t rush to simply agree the sale price while leaving other important details to be sorted out later on. Having a clear set of terms with a timetable will influence the way the transaction will proceed, and guide the lawyers to work towards achieving the agreed terms….