In order to attract and retain the highest offer until the sale is agreed, it is essential your accounts and other business records are in order and all loose ends are tied up to instil maximum confidence in your business; otherwise your interested buyers will reduce their offers or pull out of the deal.
Furthermore you should receive advice to:-
- Keep your taxes down during the period up to the sale and on the sale itself
- Limit any comeback from HMRC or the buyer after the sale
- Restructure the business where a straight forward sale is difficult or impossible
To address the above and give you peace of mind as well as maximum cash from the sale, we can help you with our tax expertise and specialist knowledge of the pharmacy sector.
Tax Warranties & Covenants
The simple essence of a Tax Covenant is that the Buyer of your company wishes to be protected from unexpected tax liabilities. A Tax Covenant is a covenant, or promise, to make payment in certain stated circumstances; it is therefore a document of some considerable power and importance.
In the context of a private company or business acquisition it is generally accepted that the Buyer will seek and the seller will give warranties. Warranties take the form of assurances or guarantees from the Seller as to the condition and state of the target company and in particular, any existing liabilities, at the time of completion. Generally lawyers use standard text in their legal document however, they don’t cover specific issues which involves a number of twists and turns that are related to your business and this is where we can help to give you a greater peace of mind after completion of the sale of your pharmacy.
We can carry out a review of the tax covenants (indemnities) and warranties for you. This service can also be provided to buyers where Hutchings Consultants Ltd is not already working for the seller of the same pharmacy sale.