Reply to: Selling ltd co

[Cirrus]

Contractors aren't businesses, as we all know.

The Revenue could do IR35 just by saying "Show if your company is worth more than the sum of its tangible assets". I might give them a call.

[simes]

I know. Just hoping it's something like the dotcom era, when there were stories of people paying millions for a website

A website even at that time would still have concurrent customers, turnover, clearly in that era no profit, maybe an IP, hopefully a big name.

A very difficult time to value companies when compared to how the Dragons' Den clearly state how They would wish a company to be valued.

But, still no.

[Cirrus]

Why would anyone be interested in purchasing my ltd co?

Because at this point they don't know it is completely worthless.

We do

[smileyface]

Yeah, but I think we both know that free money in that sense doesn't exist, hence all the earlier responses.

I know. Just hoping it's something like the dotcom era, when there were stories of people paying millions for a website

[jamesbrown]

It's "free" in the sense closing down gets me nothing (other than what's in the bank) whereas selling should get in something on top of what's in the bank!

Yeah, but I think we both know that free money in that sense doesn't exist, hence all the earlier responses.

[smileyface]

I mean, it's not free money. It's still taxable. But you could claim ER. But then, you might be able to MVL anyway.

It's "free" in the sense closing down gets me nothing (other than what's in the bank) whereas selling should get in something on top of what's in the bank!

[Maslins]

I get these all the time.

Are they not just fishing around for likely investments with little or no knowledge of what the company actually does? If you were to engage in a conversation, they would quickly close it down because the company, as ours in the majority tend to be, are of little value over and above the assets and bank funds.

Any company value based on formula involving turnover and profit would not apply here.

The above would be my thoughts. It doesn't cost much to send out a load of letters.

Every now and then they'll come across someone who is interested and underestimates the value of their company/they can talk down to a low figure relative to net assets.

Bin it would be my suggestion.

[simes]

I get these all the time.

Are they not just fishing around for likely investments with little or no knowledge of what the company actually does? If you were to engage in a conversation, they would quickly close it down because the company, as ours in the majority tend to be, are of little value over and above the assets and bank funds.

Any company value based on formula involving turnover and profit would not apply here.

[jamesbrown]

Thanks for the info.



The company who approached me seems legit, ie they have an address and website

Given the IR35 status coming in effect in April, I thought rather than closing my ltd co down, selling would be "free money".

I mean, it's not free money. It's still taxable. But you could claim ER. But then, you might be able to MVL anyway.

[smileyface]

Your company is the name they want? AutoTrader.co.uk and AutoTrader.com are two entirely different organisations on opposite sides of the Atlantic. The Dutch and South African sites are both part of the UK business. If the USA one hadn't been established, I'm sure the UK version would have set it up.

Ask to retain a 10% shareholding and 3/4 of your original asking price if you're not going to be involved in the future business. Money for old rope.

There are a very small number of situations where a company "buys" a history, certain (mainly gov contracts) will not go to newly formed companies. These are very niche cases thought

Thanks for the info.

I don't think I'd even bother TBH; once you engage with a scammer, you're not going to get rid of them easily. But if I did, the first thing I'd want is an explanation that didn't smell. I can't really think of one, so there probably isn't one, but there might be one.

The company who approached me seems legit, ie they have an address and website

Given the IR35 status coming in effect in April, I thought rather than closing my ltd co down, selling would be "free money".

[SimonMac]

There are a very small number of situations where a company "buys" a history, certain (mainly gov contracts) will not go to newly formed companies. These are very niche cases thought

[LondonManc]

Not much, under £50K. If I do intend to sell, I'll take it all out first.



Not decided yet. I just can't see why they would be interested. Anyone could set up a ltd co easily.

Your company is the name they want? For example, AutoTrader.co.uk and AutoTrader.com are two entirely different organisations on opposite sides of the Atlantic. The Dutch and South African sites are both part of the UK business. If the USA one hadn't been established, I'm sure the UK version would have set it up.

Ask to retain a 10% shareholding and 3/4 of your original asking price if you're not going to be involved in the future business. Money for old rope.

[jamesbrown]

I thought so too.

Any tips that I can verify? Would it be prudent to leave it all in the hands of my solicitor, to ensure it's all legitimate?

I don't think I'd even bother TBH; once you engage with a scammer, you're not going to get rid of them easily. But if I did, the first thing I'd want is an explanation that didn't smell. I can't really think of one, so there probably isn't one, but there might be one.

[smileyface]

If there is no significant IP or other commercial value that might be attractive to another company (other than cash), it's probably a scam of some kind.

I thought so too.

Any tips that I can verify? Would it be prudent to leave it all in the hands of my solicitor, to ensure it's all legitimate?

[jamesbrown]

If there is no significant IP or other commercial value that might be attractive to another company (other than cash), it's probably a scam of some kind.