Selling a business with debt?

[Janemorley74]

Hi. Im looking to sell my business which has around 50k hmrc debt.

With stock, assets, good turnover i could probably get around 95k for the limited company. Which i would pay off.

However would it be better for a buyer to purchase the business from me for 45k and take on the repayment plan?.

Is that possible if they purchase the limited company?, this does not move with director?.
What is they dont pay after the sale?.

Im thinking a lower purchase fee might be more attractive upfront as the stock and assets co e to around 75k.

Thanks
Jane

 

[numbersrule]

I am not an Insolvency Practitioner.

You probably need an Insolvency Practitioner.

That is irrespective of whether or not you think the business is Insolvent.

it's just that an Insolvency Practitioner would be able to provide you with Expert Advice on how to handle the sale.

It depends on the reasons why the HMRC Debt exists.

You say 'the' Repayment Plan.
Is there already a Repayment Plan in place? Over how long?

Are you the Sole Director?

HMRC might only make you personally liable if there has been wrongdoing.

Which Taxes does the Debt relate to and how much for each?

it depends why the Debt exists.

From the limited information available it seems to me that you are simply using HMRC as a low cost form of Credit.

Is that because you have poor Creditworthiness and have therefore been unable to borrow to fund the business?

If this is all true you will need to be aware that some 'Rescue Vultures' sometimes come in and buy the Assets and take the Client Contact List but don't buy the Shares with the aim of leaving you with responsibility for the Debt.

As I say you need an IP.