So, you’ve carefully audited your business to ensure that everything behind the scenes is full, accurate and up to date. (see Part 1 of this series for areas you need to consider).
What are the options now available to you and what will you need to think about?
- You stop working as a full-time employee for the business and instead appoint someone else to manage the day-to-day running.
You will need – to promote or recruit someone you trust into the role; to structure written employment terms that will motivate that person to remain with the business as long as you have; maybe appoint them as a statutory director and/or give them rights to shares, again in a formal written agreement.
- You step back partially and remain as a consultant.
You will need – to set out very clearly what you will and won’t be doing, moving forward perhaps in a consultancy agreement with the business; find someone to step into the part of your previous role that you will no longer cover; structure their terms as above; perhaps sell some of your share(s)?
- Buy another business and allow that new business’s senior management to merge with you own, allowing you to take a step back.
You will need – a valuation for your business; a purchase agreement; to carry out due diligence before the purchase; to obtain warranties from the business owner you are purchasing from.
- Sell your business.
You will need – the same as for number 3, but you will be the business being examined, and the person giving warranties if it’s a share sale.
Myself and other consultants at Cognitive Law can assist with all of these areas and more. Please feel free to contact me on karen.blakesley@cognitivelaw.co.uk.