Buying or Selling a Business

Understanding the value of your business is crucial. It's not just about knowing your worth in the market, it's about strategic planning, attracting investment or preparing for a sale. In the UK, business valuation can be complex. It involves various methods and considerations, each with its own merits and drawbacks. In this guide we consider the key methods of business valuation in the UK including asset-based, earnings-based and market-based approaches. Understanding Business Valuation in the UK Business valuation is both…

In owner financing, the seller acts as the lender. This arrangement can offer flexibility and speed, but it also comes with risks which we explain in this article.

Seller financing is a financial arrangement in which the seller provides a loan to the buyer. It can provide unique advantages for both buyers and seller however, the key to a successful seller financing deal lies in the negotiation of terms.

Buying a business is a significant decision. It involves a myriad of complexities, from understanding the business's operations to working the labyrinth of financial intricacies. One such complexity is financing the purchase. Traditional bank loans are a common route, but they're not the only option. Enter seller financing, which is often called vendor financing!

Due diligence plays a pivotal role in the share purchase process as it's a comprehensive assessment that uncovers potential risks and liabilities. Understanding due diligence is essential as it can mean the difference between a successful transaction and a costly mistake.

Preparation is the key to success with most things in life and is particularly important when you are trying to sell a business as a going concern. This is because any potential acquirer will almost certainly want to carry out pre-purchase checks to ensure that your organisation is legally and financially sound, and it is not saddled with unacceptable debt or unquantifiable liabilities.

The Share Purchase Agreement  is a legal document to govern the sale and purchase of company shares and it is the cornerstone of share purchase business transaction. Its role is to facilitate a smooth transaction whilst ensuring the interests of both buyers and sellers are protected. 

If you are buying or selling shares the Private Share Purchase Agreement is a crucial document. This article should help you if you are considering buying or selling shares in a private company as it provides a guide to the importance of a Private Share Purchase Agreement and associated documents.

When buying shares in a business you need to ensure that you know exactly what you are buying into. JPP Law can help you to fully understand your rights, obligations and risks.

Commercial due diligence is a vital process that you need to go through to check the financial position and viability of a business you are proposing to buy. It is also something that should be done when awarding contracts or agreeing to extend credit facilities.