Here is part 8 of our 10 do's and don'ts of business selling. We gained these insights from hard-won experience and observing what can happen in the business selling market!
There are many legal issues to consider in a business transaction process and, as we have often said in our eBooks and blogs, engaging a solicitor with experience in business sales is critical.
From the JPAbusiness Strategic Business Insights blog archives
This week our guest contributors, David McGuiness and Fleur Gibson from Watson Mangioni Lawyers, provide guidance as to the main items and issues that may be covered in a legal due diligence, as well as examples and case studies from due diligence processes they have been involved in.
I recently spent the day in a local courthouse as a witness in a civil court contractual dispute between one of my clients and a service provider
Turns out my client won the case, but I don’t think any of us enjoyed the experience. Going to court can be a costly and sobering exercise. The biggest revelation came at the outset of the day when the judge used his opening remarks to assure both sides that one of us would lose, and urged us to go away and try to reach a settlement rather than continue the proceedings.
We were recently asked for advice on the best way to bring an additional partner or shareholder into an existing business.
Golden rule 1: Understand what value the partner or shareholder is bringing to the business. Is it specialist expertise, an entry point into a new business line, strategic opportunities, funding… or all of these?
Golden rule 2: Understand the motivations and intentions of the new partner or shareholder – now and moving forward. It may help to seek some advisory or facilitation services to tease out and clarify these motivations.