When you first form your business, you may already have an exit plan in mind. Whether that is selling as is or entering into an acquisition or merger prior to you sailing off into the sunset.
When dealing with exit planning and opportunities that may arise for an exit, there are many legal factors to consider before taking action. The legislation spans across many business sectors – and applies to an enormous number of different business cases.
Due diligence is a major part of the process when you’re considering buying or selling a company and can be overwhelming. From a selling perspective, any potential buyer is going to want to see warts and all! Whilst it may seem low on your priority list, this is when your HR governance and compliance becomes your life raft.
Alongside your HR compliance, there are also people implications with regards to specific legal provisions that must be considered. Enter TUPE. TUPE exists to protect your employees and their benefits and applies to all businesses in the UK - regardless of size. Whether you’re a big corporation or a tiny local coffee shop, the TUPE regulations are the same.
These legalities are extremely complex, as there are many different situations where employees are and are not covered by TUPE. You are best off talking to an HR expert to understand where TUPE comes into play if you’re considering selling your business, changing to or from a contracted service provider, or acquiring another business.
The ins and outs of an exit strategy can be tricky to grasp, and the penalties for not fulfilling your obligations as an employer are serious. To avoid things going pear-shaped, you want to work with a company that understands the regulations backwards, frontwards, inside and out. Luckily, we’re here to help. Get in touch with us on 01202 143555 to talk things through.