The Accelerated Business Sale
Sometimes the best way to maximise the value of a business is to secure a sale quickly.
Accelerated is a service offered by Mitchell Charlesworth to business stakeholders who are experiencing cash flow, profit and/or balance sheet pressure or would simply like to complete a business sale quickly.
Our corporate finance, corporate insolvency and tax advisory teams work together to sell assets or businesses as quickly as possible to secure the maximum value or help to secure much-needed investment.
Working quickly ensures that there are more options available when selling the business and the end result creates more value than if a recovery is made after further loss's or an unplanned insolvency situation. During the sale we review all stakeholders' agendas so our approach is considered i.e. purchasers, management, customers, suppliers, employees etc.
Our clients have used the accelerated service when:
- They would like to sell their business quickly due to the need to retire
- There is an opportunity to sell to a buyer but needs to be completed quickly
- A key member of the management team has been lost through illness
- A major customer has been lost
- Declining sales of a product or service
- Change in working capital cycles
- Bank pressure and reduction in margins
- Unforeseen costs have meant a sale is required before the increase in costs are realised
How we support you:
Our specialist teams work within your current constraints including time, cash, stakeholder pressure etc. to identify the options available for the business and assist shareholders and directors to take directions on the way forward.
The specialist corporate finance team can work with solvent businesses to:
- Advise on the current value of the business and the scope to build business value;
- Help secure new funding or refinance if appropriate
- Identify and approach potential buyers if appropriate
- Assist with negotiations on price and other terms of sale
- Complete a business or asset sale
Our Corporate Restructuring team can help review your business and identify problem areas and advise on the best approach to avoid insolvency.
We work with the management team if their business is in a distressed situation and explore the options to deliver the best value to all stakeholders. Where a business asset or business can be sold, the Corporate Finance advisors are instructed to source an interested party as quickly as possible.
Our team will:
- Devise a strategy with the directors to manage immediate threats to the company from all types of creditors
- Support the management team by giving them the time to focus on the business and its potential value
- Create a strategy to facilitate ongoing trade without infringing UK Insolvency Law requirements therefore allowing a controlled approach to exposing the business for sale (in conjunction with Corporate Finance)
- Look at all the options available to ensure maximum value to the shareholders before entering into a controlled exit
There are always significant tax implications on the disposal of a business or liquidation of a limited company. Income tax, National Insurance Contributions, Capital Gains Tax, Corporation Tax, Stamp Duty Land Tax and Inheritance Tax can all potentially come into play depending on the structure of the sale and/or termination of the business.
Our tax team will work with you in order to ensure that:
- You or the management team understand the tax implications of the proposed sale,
- You are provided with proactive advice in order to minimise the tax issues
- The correct assistance is provided to structure the transaction so as to achieve the desired tax position
- All reporting requirements and/or HMRC clearances are dealt with as quickly as possible