What did you think about when you read the words “To a Mouse” by Robert Burns? Was it “Wee, sleeket, cowran, tim’rous beastie, O, what a panic’s in thy breastie!” or, the often quoted: “The best laid schemes o’ Mice an’ Men, Gang aft agley,”
When it comes to the completion of a business sale a critical part of this is your completion obligations. By that point the actual signing of the sale agreement, the best laid schemes have been put in place to make sure that everything runs smoothly.
You must remember that in most cases, you will be required to provide documents and items at the time of signing. This is something that should not be overlooked and while it will vary from transaction to transaction the list may contain deliverables such as:
Statutory Registers: Do you have them and are they up to date?
Share Certificates: Do you have them and were they ever issued?
Bank Mandates, Statements, Reconciliations and Cheque Books/Credit Cards: Do you have them all together? Do you have someone internally or externally who can produce a reconciliation on the day?
Security Documentation: Is there a security which needs discharged? Can the bank provide any such documents in time?
Your only requirement will be to sign these at the same time as the sale agreement, most items on the completion list will be dealt with by your solicitor. However, there are items which you will need to organise and produce in preparation for completion.
These are likely to be:
- the bank statements
- account reconciliations
- family member resignations
Be aware of what you are required to supply, crucially do not left to the last minute. As is the case throughout the sale process, preparation is key.
With the right team behind you, guiding you through the process, the best laid schemes to sell your company should not go “agley” (askew.)
If you are considering purchasing a business, please contact our corporate transaction team on 01383 721 621.
Steven Wicks: saw@businesslaw.co.uk
Alan Stalker: ads@businesslaw.co.uk
Angus McGuire: alm@businesslaw.co.uk
