Handy advice for selling your firm

Selling your business is a significant step to take.

Tom Boulton-Jones, Partner and corporate law expert at Brodies LLP, said preparing to sell may take several weeks or months - even before you enter the formal process. He added: “It is important to start the planning as early as possible and ensure all of your business affairs are organised and up to date. This will save money in the long run and make the business a more attractive prospect for buyers.

“Prior to the sale, you should also make sure you have a strong management team in place. This is a sign of a well-run company and is a good selling point. It is also important to appoint a team of trusted and experienced professional advisers at an early stage. Having a negotiator in place from the start helps to maintain relationships with the eventual buyer.”

Once the planning is done, Tom said there are five key considerations for anyone looking to sell their firm:

1. Do your diligence early

As a seller, you should carry out your own diligence on your company as early as possible to avoid any nasty surprises for buyers, and for you. Ensure that you have access to all key contracts with employees, customers and suppliers, and all other relevant contracts and information. Having this information readily available will make the diligence process less painful and allow any issues - such as change of control provisions - to be identified and addressed at an early stage.

2. Secure a letter of intent (LOI)

An LOI will show serious intent from a buyer, however it is usually drafted so that its terms are not legally binding with the exception of a few matters such as confidentiality, costs, and any period of exclusivity to which the seller agrees. A seller should ensure that the LOI is clearly drafted and covers as many key terms as possible to reduce the risk of the buyer trying to renegotiate the price or the nature of the deal at a later date.

3. Understand tax implications

There are many articles (and books) about the tax implications of selling your business. In short, this is a key consideration for all parties, and there will be different tax implications for both individual and corporate sellers to consider. Consideration should be given at an early stage as to how tax is going to be dealt with, and a good tax lawyer will be a crucial adviser in the structuring and timing of the sale.

4. Consider confidentiality

It is important to protect your “trade secrets” during a negotiation. The buyer should sign a non-disclosure agreement or confidentiality agreement before it receives the sensitive information - otherwise it may be difficult to protect this information further down the line.

5. Address transitional issues

A key consideration, often neglected during the course of the sale, is the transition process. The buyer may request that members of the management team remain in the business for a period of time after completion. Alternatively, the buyer may not want you around at all, preferring to bring in its own people. It is important to deal with this up front so that expectations are managed and, if necessary, to agree a transitional arrangement.

Success for Granite City firm at national awards

North-east estate and lettings agency Northwood Aberdeen is celebrating after winning a clutch of top prizes at the UK’s largest estate and letting agents’ award ceremony, the allAgents Awards.

The team at Northwood Aberdeen beat off stiff competition to win three golds in the categories of Best Estate Agent in Aberdeen 2022, Best Estate Agent in AB25 Postcode 2022, and Best Estate Agent in Aberdeen City 2022. They also picked up a further two silver awards celebrating the success of the lettings business.

Northwood Aberdeen was opened by Laura Mearns and her husband, Steven, in 2009.

Based in Rosemount Place and West High Street Inverurie the business is a franchise of Northwood GB, part of lettings group Belvoir, which has more than 90 offices around the UK.

New owner for Caledonian House

Standard Real Estate (SRE) has acquired Caledonian House on Aberdeen’s Union Street.

The 55,000 sqft building is fully let to Wood Group, British Heart Foundation and Pret A Manger.

This is a further strategic acquisition for SRE following previous acquisitions in the city. In 2019 the group acquired the Union Point Building, extending to 36,100 sqft at Blaikie’s Quay.

SRE Director, Hamish Munro, commented: “We view this acquisition as key to our continued success in Aberdeen. Our formula is simple – to provide bespoke office space for users large and small on flexible lease terms at an economic rental. The revitalisation of Union Street is key to the heart of Aberdeen and our plans for this building should provide the space for new and established businesses to be at the centre of the city complementing our other locations.

“In 2023 we will focus on Merchant Exchange and the limited remaining space at Union Point and Golden Square whilst in 2024 we will have available bespoke space within Caledonian House.”

Alan Burrows to join Aberdeen FC as Chief Executive

Aberdeen FC has appointed Alan Burrows as Chief Executive.

With over 15 years at Motherwell FC – nine as CEO – Alan has built up an enormous bank of knowledge, experience and credibility in Scottish football and was named Scottish CEO of the Year at the Football Business Awards in 2019.

Dons’ Chairman Dave Cormack said: “Alan has all the experience and qualities you’d look for in a Chief Executive. He’s got his finger firmly on the pulse of the Scottish game, is well-respected in footballing circles and is fully aligned with the strategy and vision we have to drive Aberdeen FC forward.

“When Alan announced his intention to step down at Motherwell FC we began a dialogue which, I’m delighted to say, has led to his appointment. Alan inherits a strong management team and staff, many of whom he has worked with on SPFL working groups over the years. I’d particularly like to thank Motherwell chairman, Jim McMahon, for his cooperation in ensuring we have been able to agree a smooth transition.”

Commenting on his appointment, Alan said: “It’s a real privilege to be asked to take up the position of Chief Executive at AFC. I’ve built up a good working relationship with the Chairman over the years and was very pleased when he got in touch.

“Aberdeen is an excellent football club with a rich and decorated history and ambitious plans for a successful future.

“There is much to do, on and off the pitch, and I am excited and eager to work with the many talented staff who I know are in place at Pittodrie. I am also keen to immerse myself as much as I can in the city and with the supporters, so I can best reflect the traditions and expectations of the Dons fanbase.”

‘Strong platform’ to build from

ACE Winches has announced a strong financial performance for the year to last March.

The company, which last year announced the opening of ACE Winches Inc in Houston, Texas, reported pre-tax profits of £4.5million on turnover of £28.3million.

ACE Winches Chairman Alfie Cheyne said the performance gave the company a strong platform to build from.