Legals







Whether you are Buying or Selling your Online Trading Business there are certain Key Steps that you need to take.

STEP 1 – Confidentiality

It is very important that any potential Buyer of an Online Trading Business treats the Seller's information confidentially.

Consequently, we would always recommend that the Seller asks the potential Buyer to enter into a Non-Disclosure Agreement or Confidentiality Undertaking.

Click on the link below to obtain a FREE Confidentiality Undertaking for you to use. Confidentially Agreement ›

STEP 2 – Outline Agreement or “Heads of Terms”

As a Seller, before you take your Online Trading Business “off the market” (by granting what’s known as “Exclusivity”) you will want to reach agreement with a potential Buyer on the fundamentals of the deal. Questions that need to be asked, answered, and agreed in writing (in a document called “Heads of Terms”), include the following:-

  • What price is the potential Buyer going to pay you and what is included (e.g. in addition to your Businesses Web Domain Name are they expecting to acquire any Stock of Product that you are selling)?
  • Is the potential Buyer going to pay you up front for your Online Trading Business or are they going to pay you a monthly amount over a period of time (or both)?
  • What level of investigation (known as “Due Diligence”) will they want to undertake on your On-Line Trading Business and how long will you grant them to undertake their investigations?
  • Will you be required to provide what are known as “Warranties and Indemnities” to a potential Buyer, which provide the potential Buyer with protections after they have acquired your On-Line Trading Business in case everything isn’t quite as it seemed?
  • On what date will the sale of your Online Trading Business actually take place (or if it hasn’t been sold by then the date you will end “Exclusivity” and put your business back “on the market”)?

STEP 3 – Enter Into A Legally Binding Business Purchase Agreement

Once a potential Buyer has concluded their Due Diligence then, if they are still keen to proceed with the purchase, you will need to enter into a formal legally binding contract for the sale of your On-Line Trading Business with them (often called a “Business Purchase Agreement”) which will incorporate, in much more detail, the Heads of Terms agreed in STEP 2.

We would always recommend that you use a firm of Lawyers to draft your Business Purchase Agreement.

Click on the link below to contact us on a NO OBLIGATION BASIS, if you would like us to find a firm of Lawyers to help you. Contact Us ›

STEP 4 – Transfer Your Online Trading Business To Its New Owner

Once you have received the money from your Buyer (usually via your Lawyer, if you have used one) you will need to complete the transfer of your Business by, for example, transferring the ownership of your Web Domain Names to their new owner.

Please call us FREE on 0800 160 0948 for further information or if you have any queries.