Different ways of selling a business

You are likely to eventually consider selling your business, for reasons such as retirement or receiving an attractive offer. The two main ways of selling a business are shareholdersIn relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company. selling their sharesShares in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. in a companyA private company limited by shares incorporated and registered in England and Wales. , or a companyA private company limited by shares incorporated and registered in England and Wales. itself selling its business and assets. This section will help you to understand the difference and decide which type of sale suits you best. Note this section assumes your business is a companyA private company limited by shares incorporated and registered in England and Wales. . It briefly covers buy-outsBuy-outs are forms of share sale to buyers who are often led by or have backing from a professional investor such as a venture capital or private equity fund. A buy-out offers some of your company's owners an opportunity to sell their shares and allows others, who may for example be part of management and who do not want to sell, to continue as shareholders. At the same time, employees who are not currently shareholders may have the opportunity to invest in shares going forwards. and IPOsInitial public offerings. The first time that companies' shares are admitted to listing on a regulated public market (such as the main market of the London Stock Exchange) or admitted to trading on another type of public market (such as AIM). but does not give detailed guidance.