Reply to: Selling a the company instead of closing ?

[DeludedAussie]

Did the OP actually end up getting advice of whether a company with history is worth retaining?

What figure did he manage to get? This would certainly be a help to a few people on here going forward I would think

[SupremeSpod]

You need access to my inbox, the thought that pops into my mind while reading emails from business is "are you on drugs"

5 more weeks

Just think of the money, honey!

[alreadypacked]

Thanks, I really needed a laugh today.

You need access to my inbox, the thought that pops into my mind while reading emails from business is "are you on drugs"

5 more weeks

[Old Greg]

It is not a wrong forum to ask the question. This isnt Mumsnet, this is a forum filled with educated bright IT contractors who know a bit about setting up companies etc.

Thanks, I really needed a laugh today.

[chef]

You must be on the bench right now....no way you'd type out such detailed response for every post!!

bench? what's that? I've been working hard here in Munich for the past 2 years. Ok things are a bit slow right now but only because deadline was last friday and now it's in the test team's hands.

[fullyautomatix]

Im with testmangler on this one ..... by virtue of it having a trading history it does has a value.

As he says, its the wrong forum to ask the question as from a contractors perspective as you wouldnt need a company with a trading history.

It is not a wrong forum to ask the question. This isnt Mumsnet, this is a forum filled with educated bright IT contractors who know a bit about setting up companies etc.

[wantacontract]

Chef you have too much time on your hands...

Ok, we're getting there, you think 1 grand is a good value for your co. I'll persist as I'm genuinely interested. Lets play yes/no then instead as you seem either pretty cagey or you're hiding something.

If I pay you £1,000 for your co.

Would I get:
-a company bank account?
-any cash capital?
-any other capital (printers, phones, office signs, stationery etc.)
-legal rights of company ownership?
-any electronic rights i.e Domain Name, Website, control of any hosting packages currently assigned to the business
-100% share rights
-100% control over the company (i.e you are not a silent partner or non-exec director)
-company logo rights/templates

Some yes/no questions about the company's health and the sale:
-does the company have any debts in any form whatsoever?
-will there be sufficient funds included in the company accounts to cover any bills up to the point of sale?
-will you pay for an accountant to draw up company accounts up to the point of sale including any future income/debts/expenditure you are aware of?
-will you pay for any costs in transferring the company from you to me inlcuding bank account, web space, domain name transfers and any other associated company details.
-will you pay for a solicitor to write a contract to state the answers to my above questions?


In fact I'm selling a pen here, It's existed a few years and still writes, shall we swap for your co.? I was thinking of selling it for a grand as someone mentioned it was possible so it seems a fair deal so far unless i get further details.

If you want to know if the pen i'm selling is a rare collectors edition mont blanc or a biro I swiped from Argos then if you tell me further details about what I might get if I purchase your co. for £1,000, I'll tel lyou more about my pen and you can then decide if I should dip into my future childrens hard earned inheritence or swap it for a pen.

You must be on the bench right now....no way you'd type out such detailed response for every post!!

[alreadypacked]

Pentoville?

[Clippy]

So where are you going for the next 4 years ?

Pentoville?

[TestMangler]

Whilst there might be some value associated with a 3 yr trading history, the full value of the company can not be assessed without answering at least some of, if not all of Chef's questions...

Absolutely. Said that in post #19. (If he was selling it himself).

[Ravello]

Whilst there might be some value associated with a 3 yr trading history, the full value of the company can not be assessed without answering at least some of, if not all of Chef's questions...

[minsky1]

Im with testmangler on this one ..... by virtue of it having a trading history it does has a value.

As he says, its the wrong forum to ask the question as from a contractors perspective as you wouldnt need a company with a trading history.

If your tendering for a local governement contract for example and you have the experience but your company does not have the 3 year accounts history, your response will not be shortlisted.

Obviously what the company trades in will have a bearing on whether its of use to the new owner. If its a personal service company, then I would doubt it, unless the new owner has some opportunities lined up which require production of 3 years worth of accounts and his current tax avoidance vehicle doesn't have this.

[alreadypacked]

going nonresident ...

So where are you going for the next 4 years ?

[d000hg]

I do so love people who make sweeping judgements about others..

In general though, he's right. The odd proper company here doesn't change the fact that in general CUK members are not typical companies. That's the point of a generalisation...

[TestMangler]

Chef, you seem to think I was having a go at you. Not the case.

I was trying to point out to the OP why selling his company may work for him and examples of why someone my want to pay for it.

I also advised him that he may want to go to the professionals for advice. (In a round about kind of a way )

Wasn't having a pop at the questions you were asking. You are correct, if the OP tries to sell a company himself, he'll need to be able to answer all of your q's and more.