‘Expert advice is essential’ when selling a business

Posted 29/09/2010

Anyone thinking of selling a business and perhaps acquiring a new one should seek expert advice to ensure they understand the process thoroughly.

Mike Handelsman, who is an expert on internet business-for-sale marketplaces, told WebCPA.com that business owners will benefit from the guidance of a solicitor when they are going through a transition period.

“Understanding the minute details of a business sale contract can be challenging … Selling a business is no easy task,” he pointed out.

Mr Handelsman said it is important to consider what will be done with the proceeds from the sale. If they are to go towards an acquisition, he advised entrepreneurs to think about what they expect their down payment to be and whether they can realistically finance the new purchase.

Earlier this month, Luke Johnson, owner of Risk Capital Partners, suggested in an article for the Financial Times that people thinking of buying a business could consider taking on shareholding partners as a way of preventing debt.