CORONAVIRUS:   Lawson-West Solicitors is ‘Open for Business’ and here to help you with your legal needs.

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Plain Sailing?

When selling your business, sorting out the legal issues is essential to ensure things go smoothly. Although each sale is different, the process generally breaks down into 5 key stages:-

Pre-Sale

a) Get together all legal documents relating to your business, and plug any gaps! Some specific issues you might want to consider include:

• Employees – has everyone got a contract of employment?

• Plant and Equipment – is it properly maintained and have you got the records to prove it?

• Vehicles – do you have all service histories, log books and MOT certificates?

• Accounts – do you have the last 3 years accounts and up to date management accounts?

• Paperwork – do you have the originals of all important documents such as leases, hire agreements, contracts with customers and suppliers etc.?

• Licences – do you have what you need e.g. to sell alcohol or waste disposal?

b) Get the buyer to sign a Confidentiality Agreement before revealing information and starting negotiations.

Heads of Agreement

Be clear about what is/isn’t included in the sale, the price, when payment should be made and any pre-conditions, and restrictions to future trading.

Due Diligence by the Buyer

a) Financial Due Diligence looks at the financial viability of the business.

b) Legal Due Diligence involves checking all legal contracts, leases, titles, possible litigation and other issues, e.g. environmental risk. Good pre-sale preparation pays dividends: if the buyer perceives a risk they may pull out or seek to re-negotiate.

The Share or Asset Purchase Contract

This is the main legal document based upon the Heads of Terms and due diligence, and will contain the mechanics for completion, how the money will be worked out including how under/over-payments to third parties will be handled.

Warranties/Indemnities/Disclosure

Warranties and indemnities are legally enforceable promises by you to back up the information you have provided in the due diligence. A disclosure letter is one way to protect yourself so your buyer cannot say they didn’t know about

something.

Call David today on 0116 212 1000 to see how we can help if you’re selling a business.

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Coronavirus:  We are pleased to announce we are Open for Business

Even during Leicester’s most recent, extended lockdown, you can be assured that it is ‘Business as Usual’ at Lawson-West and we're here to help you with your legal needs. 

We are driven by our commitment to help others. We are here. For you.

At this time, please contact us by telephone, website enquiry or email.
We’re here to help:

Leicester:
4 Dominus Way, Meridian Business Park, LE19 1RP           Tel: 0116 2121000

Wigston:
44 Long Street, Wigston, LE18 2AH                                              Tel: 0116 2121080

Market Harborough
Millers House, Roman Way,
Market Harborough, LE16 7PQ                                                        Tel: 01858 445480

Website:     www.lawson-west.co.uk

Email:           mail@lawson-west.co.uk

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