Inform Magazine

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Understand the tax situation for your sale

Get the timing right

Often the single biggest cost of selling a business is tax, and a buyer will naturally have questions relating to this area – expert advice to minimise your risks and burden is therefore invaluable. If you sell your business for a profit, you will have to pay Capital Gains Tax (CGT) on anything above your tax free allowance. K3 Tax Advisory, a sister company of KBS Corporate, has a team of chartered accountants and chartered tax advisers with specialist knowledge in mitigating the tax implications that inevitably arise in business sales, acquisitions and restructuring, and can provide you with a full pre-transaction review. Regular contact with parties interested in acquiring your business is important to lessen the chances of them walking away during negotiations. Most buyers will aim below your target price and while some leeway should be built into your valuation, KBS Corporate can look after the entire negotiation process for you. The strategies and techniques of our highly knowledgeable team of advisers, acquired over decades of experience within the M&A industry, are available to leverage maximum value for your company. 9 Even working in tandem with an adviser, selling a business can be a time-consuming experience – and one that must not impact on the day-to-day running of your business. What can never be allowed to happen is an adverse impact on revenue because too much attention is being placed by the shareholders on the negotiation of a sale – but working with an experienced provider such as KBS Corporate negates any such worries. We help to manage the sale while you focus on your business. Another thing to avoid is mentally checking out because you know your time with the business is limited – employees and prospective buyers could pick up on this, leaving you in a compromised position. As the hints above explain, there are many factors to consider when you are selling a business. If you would like assistance with any aspect of a sale, 10 Hone your negotiation techniques Take care with time management

As mentioned in the previous tip, there might be a specific reason for choosing exactly when you want to embark upon a sale – but if it’s the correct time for you, is it equally suitable for your business? You may have already circled a date on the calendar for a big retirement party. However, the markets could be indicating it might be prudent to wait for the right opportunity to secure the best possible deal for yourself and your workforce. Indeed, the best time to sell, and to realise maximum value for your business, can often be when you do not actually need to. KBS Corporate can advise about the most opportune time to test the waters and then guide you through the entire sale process. Once the big decisions have been made, it’s time for action – and that begins with preparation, in terms of getting your business shipshape and ready for inspection. Ensure you have the right personnel in the key positions and if it is a physical business with company premises, spruce them up – just like if you were selling a house and expecting viewings. Other factors to consider include settling any ongoing disputes, clarifying the status of all contracts/leases, bringing accounts up to date and getting everything on point for due diligence. 6 Confidentiality is a critical element of the service KBS Corporate provides and it is essential your employees, customers, suppliers and competitors do not discover the business is for sale until it is necessary. If word got out, it could lead to staff anxiety, rival companies potentially trying to poach them, customers taking their trade elsewhere and suppliers expressing concern about contracts being honoured. KBS Corporate’s bespoke, highly personalised service is carried out to a level of confidentiality throughout the process that ensures discretion and protection which surpasses the industry standard. 7 Preparation, preparation, preparation Keep it confidential

visit www.kbscorporate.com or call +44 (0)161 258 0118 for a confidential, no-obligation discussion.

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