Peter Nevile, Founding Partner at Nevile & Co Commercial Lawyers, explains why lawyers, as well as clients, like to keep their costs to a minimum.
Usually I have been writing about our experience as lawyers – negotiating, documenting and settling sales of pest control companies. This is work we undertake on a fixed fee success basis: no sale, no fee. However, I thought a little inside information might be of assistance to many readers.
Contrary to popular belief, lawyers generally wish to provide their services to their clients at the lowest possible price. While this might seem a contradiction to the experience many clients have with their lawyers, it is simply good client management and excellent for ongoing business relationships.
I’m not going to pretend that legal advice is not expensive: it is. However, as I often say, we’re not really here to give legal advice – we’re here to provide legal solutions. These days with mandatory cost disclosures, clients are fully aware of the likely cost to be incurred to provide that solution. In some situations, particularly litigation and family law, it is difficult to estimate a final amount and in fairness it can only be estimated step by step. A lawyer cannot control the actions of the opposing parties or their lawyers, so it’s a little like peeling an onion; one layer comes off, followed by the next. However, operating on a no sale, no fee basis gives our pest management clients reassurance that legal costs are kept in check.
Clients can certainly assist in the sales process by being well organised from the start. If you provide your lawyer with a shoebox full of documents and a lack of detail, unnecessary time will need to be spent to ascertain the true value of your pest business. This can be a lot of work before the sales process even gets underway.
The best way is to start with a clear picture of the financials of the business. Detailed historical accounts and ideally a 3-5 year future forecast, along with a breakdown of the customer list (residential v commercial, recurring business and any contracts) will provide the essential information to value the business. Having detailed financial records, forecasts and a well maintained CRM are not only needed for fair valuation but presents the business as a well-run entity to future buyers.
When selling your business, it’s important to have confidence in the person who you’ve engaged. You must be able to rely upon the advice of your lawyer. What should you do if you don’t have confidence in your lawyer? You should choose another one! With over 50 years’ experience working in the commercial, corporate and property sectors, the Nevile & Co team are well placed to offer professional guidance to business owners who are considering selling their pest control business.
Pest managers who would like to explore their options for selling on a no-sale, no-fee basis can get in touch via the Nevile & Co website for a free, no obligation chat.
Peter Nevile, Founding Partner, Nevile & Co Commercial Lawyers
