So you started your own new company with lots of aspirations and goals, but all of it has come to an end, and now you need to sell it. But how can you do that? This article covers all the essential and inescapable things on ‘how to sell a limited company?’ that one needs to take into consideration way before selling it.
How To Sell A Limited Company
Selling A Limited Company
One may sell their company for many reasons, be it retirement, back-to-back losses, or simply because of conflict of interest with the business. Below given is the list of things you need to consider, which later we will discuss in-depth,
- Sell the shares
- Selling your assets
- Transfer of liabilities
Selling of the Shares
If your company is shared with other holders, then the remaining shares will have to be sold. And this shall be conducted after all the shareholders agree to the sale. This option is considered to be a clean break option for the shareholders. The new buyer will be buying the whole company along with its assets, liabilities and business. The corporate entity continues in its present form, so there is no need for the renewal of contractual arrangements, as it’s just the ownership is transferred.
Selling off the Assets
If not the shares of a limited company, you can sell the assets of your business. Assets include goodwill, equipment, furniture, fixtures, account receivables, inventory and investments, which could be sold to the new owner directly. Assets are directly the value of your business, so you need to figure that out seriously. And who does it better than Pearson McKinsey! Give us a call right away, and we will guide you with such matters and anything around finance and accounting.
Transfer of Liabilities
Starting is a business leads to profits as well as liabilities, both short-term liabilities. Sales taxes payable and payroll taxes payable, and long-term liabilities, such as loans and mortgages, salaries, etc., come under liabilities. The liabilities are also transferred to the new owner when selling a limited company. The new buyer is liable and entitled legally to check all the liabilities of the company to know what he is getting into.
Sell My Business Uk
If you are in the united kingdom and want to sell your private company but are hesitant about rules and regulations, get in touch with Pearson McKinsey — One of the best accountants for startups in London. We will guide you with all of it!