Purchasing a business can be a very stressful experience, particularly so when an individual or a married couple is doing so for the first time.
For individuals wishing to "be their own boss" purchasing an established business can be a viable alternative (and sometimes a more attractive option) to establishing and starting a business venture from scratch.
However, whilst being potentially more convenient with an established customer base, established suppliers (and perhaps valuable and well located premises) there are potential pitfalls as contractual liabilities, business debts, and legal obligations towards the employees will all be inherited by the new owner(s). It is therefore essential that your potential legal obligations are known and understood (and perhaps subject to some negotiation) before you contract to purchase the business entity.
Increasingly in the modern world, as well as offering individuals a route to a life in business, purchasing a business is seen as an effective way for a small or medium sized organisation to expand and grow. It can offer a faster and more effective route to growth than the natural "organic" expansion. The same caveats outlined above still, of course, apply.
Alternatively, a management buy-out can be an attractive option for an established organisation to "spin off" a part of its activities to form a new legal entity, perhaps to maximise shareholder value or to re-align itself strategically. We can advise either the existing organisation seeking to sell or the management team seeking to purchase.
Whether you are a potential buyer or seller of a business we can help you achieve your aims.
For further information please contact Robert Beattie, Mark Roome or Gillian Jones.