When it comes to selling a business, you may be feeling overwhelmed at the thought of when the best time to sell is, what the meanings of technical terms are and how you can sell your business fast. One major point that you may be worrying about is how you could possibly sell a business with debt. Along with the other questions you may have about selling, this could seem like a big task. But there is no need to worry because in this article, we will answer all of your questions, explain the technicalities, and give you advice on what to do if you find yourself in this situation.
What are examples of liabilities of my company?
There are two types of debts, which are ‘current’ or ‘long term’. Current liabilities are payable within one year and long-term liabilities exceed the one-year mark for repayment.
These include:
- Creditor debts. This is money which is owed to creditors, such as HMRC tax debs, Covid-19 Bounce Back Loan, credit card balance, overdraft, or commercial finance.
- Accounts payable. These are funds due to suppliers and vendors for services and good that they have delivered or short-term debs such as essential bills.
- Depending upon if the employee structure remains the same during and post-sale, company debts will include employee wages and employer pension contribution.
How will my sale price be affected?
If you are selling your business, you should do your best to clear company debts, settle outstanding affairs and bring financial reports up to date.
When selling your business, you want to make it as attractive as possible. This means cheap running costs and low overheads to secure a competitive sale price.
Substantial debt will be taken into consideration by parties with interest and offset against the sale price.
How do I find out my sale price?
If you want to find out how much your business is worth, you can get in touch with FastCash4Houses. Tell us about your property, we will process the property valuation and give you a no-obligation cash offer within 24 hours.
FastCash4Houses are your number 1 trusted go-to buyers of houses, commercial property, land, industrial and businesses. If you are looking for a fast turnaround from offer to completion, then look no further because we have built up an enviable reputation for helping countless property owners who have been struggling to sell their property or want to sell fast.
You may choose to get in touch with a business broker for more information on how to sell a business in debt and how to value a business in debt.
Either way, whatever pathway you choose to make your dreams a reality, FastCash4Houses is here to support you every step of the way.
Our friendly team know that time is critical and that a property needs to be sold almost instantly. Do not stress, get in touch with us today to get a valuation.