|
If
you're looking for a way out....
 Apologies
for the use of the almost forgotten eighties Odyssey single.
When starting a business it is crucial that you consider all
the issues that will result from someone leaving or selling.
Unfortunately,
partnerships often don't work. The pressures of being in business
together will put a strain on any relationship. At this point
the fact that a professionally drawn up partnership agreement
was in place from day one will make the parting run a little
smoother. The mere act of drawing up the agreement in the
first place will help avoid disputes.
If
you have a Limited company with more than one shareholder,
the equivalent is a shareholders' agreement. This can protect
minority shareholders and set out what is expected of each
party. Alternatively, the Memorandum (the company's rules)
can be altered to include other items.
|
|
Many
entrepreneurs run their business with the sole intention of
one day selling it. 'This business is my pension'. If you
are in this position, then it is critical that you have something
that someone will wnt to bu. A business totally dependant on
one individual (usually the owner) will be much harder to sell
than one that has its own systems and personnel. ideally, it
will be in a niche industry.
Tax
issues should also be considered. The phasing out of retirement
relief and it's replacement by the less efficient taper relief
will have a detrimental effect on selling.
Whether
you are at the start of a business or end, professional help
is essential. Good advice about all the things that could
go wrong will prevent them happening.
Lance
Clifton of
Stephen Hill Partnership advises on both start-ups
and business disposals. He can be contacted on 01634
280500 or e-mail enquiry@shpaccountants.co.uk
|
