Advice on selling part of a business

[Ruthie]

Hi,

I am looking for some advice regarding my business. I am a holistic therapist and I am relocating to a different part of the country. Rather than just letting go of my website which ranks well and my client database and Email and SMS list I was wanting to find out if its possible to sell any of these assets. I don't want to sell it as a business per se as I was only self employed. Is this something that is possible? What are the legal implications or requirements? Also I would want to get it moving with it now if there is any mileage in this.

Many thanks
Ruth

 

[The Resolver]

In general the answer is 'yes'. As to the emails it would be affected by your privacy policy and whether you covered yourself for transfers but at worst you simply offer to introduce past clients to the buyer, albeit with their consent, A simple form can be setup to achieve this outcome.

 

[Sandy]

This is interesting. In order to sell part of a business including the client database - part of the client database? - wouldn't they need permission from every single client? Clients would need to be notified?

 

[Ford Jones]

Hi Ruth,

Selling your business assets can certainly be done, but there are several considerations to keep in mind:

1. Valuation: First and foremost, determine the value of the assets you're selling. Your website's domain, especially if it ranks well, has value, as do client databases. Consulting with a business appraiser or a specialist in digital asset valuation can help.
2. Data Privacy:
   • Selling a client database can have significant legal implications, especially concerning data privacy laws. Given that you're in the UK, GDPR (General Data Protection Regulation) compliance is essential. Before selling any personal data:
     • Ensure that you have the necessary consents from your clients to transfer their data to a third party.
     • The purchaser must also be compliant with GDPR or any applicable data protection regulations.
     • Consider anonymizing the data or allowing clients to opt out before the sale.
3. Communication with Clients:
   • Before you make any moves, it's essential to communicate with your clients about the transition. Clients value transparency, and informing them can prevent potential concerns or misunderstandings. It may also help them decide whether they want their data transferred or deleted.
4. Assets Sale Agreement:
   • If you find a buyer, draw up an assets sale agreement detailing what is being sold, the terms of the sale, the price, any warranties, and other essential terms. It's advisable to consult with a business attorney to ensure the agreement is legally sound and beneficial for both parties.
5. Tax Implications:
   • Selling business assets can have tax implications. It's crucial to consult with a tax professional or accountant to understand any capital gains tax or other relevant tax concerns related to the sale.

 

[omeracc]

Selling part of a business is a significant decision that requires careful planning and execution. Whether you're selling a minority stake or a larger portion, here are some key pieces of advice to consider:

1. Define Your Objectives:
   • Clearly outline why you want to sell part of the business. Are you seeking capital for expansion, reducing debt, bringing in expertise, or other reasons? Understanding your objectives will guide the entire process.
2. Business Valuation:
   • Determine the value of the part of the business you're selling. This often involves a financial analysis of assets, liabilities, revenue, and profit. You may want to engage a professional business appraiser to get an accurate valuation.
3. Legal and Financial Advisors:
   • Seek advice from legal and financial professionals experienced in mergers and acquisitions. They can help structure the deal, ensure legal compliance, and navigate the complex financial aspects of the transaction.

For more detail, Visit Omer & Company Accountant