The Legal Week.co.uk

BLOG: Having millions in the bank is not that easy

Posted by Legal Week Administrator on June 11, 2007 4:33 PM | 

My normal working day as a solicitor for the past 17 years has been involved in the buying and selling of companies.

Every day in the Daily Post there is a mention of the sale of a company and each story will have a different interest angle.

In relation to the recent sale of Burton Foods to a private equity backed purchaser, the Daily Post has concentrated on the number of jobs that are likely to be lost at their Moreton factory.

The interest in business, created by programmes such as the BBCs Dragons Den, has brought great public attention to entrepreneurs who invest in businesses and then sell them. The presence of Peter Jones as a guest on Chris Moyles' Radio 1 Breakfast show is illustrative of this.

What is generally unknown and what I will focus on in the coming weeks are the number of individuals who have sold their companies for very considerable sums - as evidenced by the increasing number and success of wealth management companies as well as traditional stock brokers.

It is interesting to note the amount of publicity that lottery winners create. Millions of people every week play the National Lottery in the hope of becoming a millionaire but literally hundreds of millionaires are created every month from the sale of private companies.

To build and run a successful business worth many millions is very much more difficult than nipping into the newsagent to buy a lottery ticket and almost certainly any millionaire who has sold his business deserves the fruits of his labour. But selling a business has issues for any individual and although many such new millionaires think they are at the end of an important chapter the new challenges they face are immense. Having millions in the bank is not necessarily that easy.

JONATHAN BROWN IS CORPORATE PARTNER AT HALLIWELLS


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