Business Sale Checklist

Many business sales are delayed unnecessarily or even fall over because of relatively minor problems occurring at the wrong time.


So as to ensure that you have removed all possible barriers to being able to successfully complete the sale of your business, please find below a check-list that I hope you will find useful:


1. Title deeds (Freehold) - If your business is a freehold subject to a mortgage then your Mortgagee will be holding the title deeds.
Do you know your Mortgagee’s details and your mortgage account number:

If your freehold is not subject to a mortgage, do you know the location of your title deeds.


2. Title deeds (Leasehold) - If your business is a leasehold then what is the location of your lease. Is it with your solicitors or your bank?


Do you know your Landlord’s details or their agent’s details?

3. Fixtures & Fittings
We suggest you make an Inventory/list of fixtures and fittings and/or plant & equipment included in the sale.


4. Apportionment of price
We recommend that you discuss with your Accountant the apportionment between goodwill, fixtures and fittings and property.


5. Stock
Check your approximate stock level carried.


6. Employees
You will be required to provide the purchaser with the full details of your employees.
We recommend that you put together a file containing their names, addresses, dates of birth, hours worked, rates of pay and lengths of service. You will also need to provide the purchaser with copies of employment contracts, disciplinary details, holiday entitlements, bonus details, pensions and life cover details. Again we recommend that you start putting together that information in a file if you have not already done so.


7. Third Party Contracts
You will be required to provide the purchaser with details of any service/supply contracts for the business, e.g. regular suppliers, maintenance contracts for alarms, lottery and Paypoint details, advertising contracts etc


Also, you will need to provide the purchaser with details of any other commitments that you have paid in advance and that you will want the buyer to repay on completion.


8. Permits & Licences
You will need to provide copies of any Licences, Permits or Authorisations that allow you to trade; e.g. premises licence, Ofsted, Post Office etc.


Have you procured a Commercial EPC (Energy Performance Certificate) for your business premises? If not, then we can provide a quote.


9. Planning Permission
Please check your Planning Approval(s). Do you have planning consent for your use of the building?


If you have at any time increased the size of your building or business, did you get the necessary planning consent for that increase? If you did not get consent then this will almost certainly delay completion and possibly cause the sale to fall apart, consequently we recommend that you ensure that you have all necessary consents.


Do you have Building Regulations consents for any works you have carried out? Do you have plans/details of such works?


10. Business name
Are you happy to let the purchaser use it?
Do you intend to keep working or setting up in the same business in the same area after the sale?
Obviously if you wish to keep working in the same area or if you wish to retain the business name then this is likely to affect a sale and the goodwill value.


11. Website
If your business has a website, usually a purchaser will be buying this as well.
Do you know who is hosting your website?
Do you know who owns the domain name(s)?
Are you under any contracts regarding the hosting or management of your website?

We recommend that you check to ensure that you can and know how to transfer the website to the purchaser. We strongly recommend that you do not wait until completion to do this as the process can take some considerable time.


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