Maybe closing company due to illness. Has anyone 'sold' their Ltd Co.?

**jamesbrown** · 5 November 2023, 14:42

Honestly, unless the company has tangible assets, like retained profit, it’s unlikely to have resale value and you’d be better off closing, either by strike off or MVL (for assets > 25k). There is little value in a contractor Ltd, even with a long history of projects delivered. Best to go dormant, as you suggest, and then revive or close later on, but I also wouldn’t leave it hanging around for your loved ones in the event things do go pear-shaped from here, because sorting that out will be the last thing they want to deal with. In short, my advice would be to go dormant, but to make the decision about closure with as much time to spare as you can reasonably manage. Best of luck!

**courtg9000** · 5 November 2023, 15:03

Speaking as an IT Contractor (1997-2013) turned business broker.

1 man band firms such as those operated by yourself and our very learned colleagues on this forum rarely have any real value on the business sale/business transfer market regardless of badges or reputation unless there is a reason someone wants it. Note that this reason is often criminal.

Some 1 man band firms can hold "legitimate" value but these usually have a lot more to them than billings for one individuals time and some badges and certifications however laudable and worthy they may be.

From the selling points you list I can see a few of these being of interest to the "non legitimate fraternity" who might pay quite well for it. However, you may well find yourself dealing with the aftermath later on down the line. I was going to make a comment here about bending over to pick up soap but thought better of it.

jamesbrown has the general processes particularly well nailed for you.

**northernladuk** · 5 November 2023, 16:56

Originally posted by David71 View Post

I'm quite proud of my Co. and rather sell it than see it fade away.

And this is the mistake that's gonna lead you in to problems. Pride before a fall etc. You've got to step away and be objective. What's left to buy if you werent there? Would you buy it? I think the answer will be pretty clear to you if you can see through your fog.

**NotAllThere** · 5 November 2023, 17:31

The resale value is in x years of accounts. People buy companies in order to make it look like they've been established a long time. I wouldn't do it on the basis that the company remains linked to me.

**Lance** · 5 November 2023, 21:43

The only extra value in a PSC, other than retained profit, is length of time trading.
10 years might be worth £70k to the right person.. however it will take time to sell and you will incur legal costs as well as commission for whoever sells it for you.
on the plus side, but not for the OP, selling a company avoids the 2 year issue of liquidating a company (or so I have been advised by a legal person).

**David71** · 5 November 2023, 22:43

Thanks for all the thoughtful replies, I get the view that this probably isn't a great idea and I'm not going to waste time or energy where not needed.

courtg9000 - you don't know how close you are; been offered up of 7k to put in a DV application before - just 'hypothetically' of course during a conversation with someone in a very large consultancy. While not ethical, I don't think this would be criminal as is just creating the application which then still goes thorough the UKSV process.

Interestingly when the whole UKSV process ground to a halt at the start of the lockdowns a plea was sent to sponsors to stop trying to clear random contractors who didn't have any business relationship with the sponsor as this was helping create the backlog. It was a 'plea' rather than a 'don't do this' so I don't think there are any rules as such against it - just bad practise. Anyway, not really sure but that was my take.

The scenario I was really thinking off was maybe a small recruitment agency who wanted to break into supplying SC/DV/NPPV roles but didn't have the current involvement in relevant roles to qualify as a sponsor who might buy my Co. to get a foot in the door.

Cheers again

David

**courtg9000** · 6 November 2023, 01:43

Originally posted by David71 View Post

Thanks for all the thoughtful replies, I get the view that this probably isn't a great idea and I'm not going to waste time or energy where not needed.

courtg9000 - you don't know how close you are; been offered up of 7k to put in a DV application before - just 'hypothetically' of course during a conversation with someone in a very large consultancy. While not ethical, I don't think this would be criminal as is just creating the application which then still goes thorough the UKSV process.

Interestingly when the whole UKSV process ground to a halt at the start of the lockdowns a plea was sent to sponsors to stop trying to clear random contractors who didn't have any business relationship with the sponsor as this was helping create the backlog. It was a 'plea' rather than a 'don't do this' so I don't think there are any rules as such against it - just bad practise. Anyway, not really sure but that was my take.

The scenario I was really thinking off was maybe a small recruitment agency who wanted to break into supplying SC/DV/NPPV roles but didn't have the current involvement in relevant roles to qualify as a sponsor who might buy my Co. to get a foot in the door.

Cheers again

David

I was asked to procure companies such as we and our fellow learned colleagues run by "potential clients" more than once. Safe to say I refused in all but one case but that was legitimate and I could prove that one end to end.

Maybe closing company due to illness. Has anyone 'sold' their Ltd Co.?