How We Buy Your Business

How We Buy Your Business

Our expert team will help make the process easy and hassle-free throughout the buying process.

How We Buy Your Business

With the current economic climate, mostly private businesses are bought in the following two phases:

Phase 1: A first payment is paid within (normally) 3 days of legal completion

Phase 2 : A portion of the agreed sale price is paid on a deferred basis (usually lasting between 12-36 months).

What is the purpose of the deferred portion?

There are a number of reasons for phase two:

1. Due to the risks associated with private businesses in the current climate, our funders and investors prevent us from paying the full amount straightaway.

2. In rare cases, it ensures that a seller is honest about the future value of the business, because the relationship will continue beyond the initial sale.

We make sure that you receive the fairest price for your business. Any excess cash will belong to the company, not the owner(s) of the shares.

However, we understand that you may deem this cash to be yours. The best tax rate that you can expect to achieve is probably 27%. In some circumstances this could increase to as much as 40%, if taken as a dividend. Alternatively, you may find that you can save a significant amount of tax if you sell your shares.

This diagram demonstrates the difference in profit when selling or keeping the asset for a business valued at £1.2,000,000. (NB. After three years all vendors are obliged to sell)

You will have received this presentation as a result of expressing an interest in selling to us, or because we have met you through an introduction.