Selling a company

[CocoChanel]

I set up a small company less than one year ago. I have no employees.I have small debts (under 10k). I haven't really traded because of personal circumstances and because of those circumstances I cannot give the company my commitment to continue running it. I have set up the company as a limited company and have an active website with a small database of interested clients. Can any of you tell me if I should try to sell the company or should I just close out the debts and shut it down?

 

[Graham_07]

I have small debts (under 10k).

Do you mean that the company's liabilities to it's creditors exceed its assets by some €10K ? If so, apart from the possible Company Law implications # , it may be difficult to find any party interested in purchasing the company in such circumstances.

# I note from one of your other posts that you set the company up yourself only a short time ago. I trust that you are aware of your Company Law obligations in relating to trading while insolvent.

 

[CocoChanel]

The only creditor I have is the bank. I took out a small loan to set up the company.

 

[Graham_07]

The only creditor I have is the bank. I took out a small loan to set up the company.

The bank presumably got you to provide a personal guarantee (PG) for the loan so that in the event of the company's default then you would be personally liable.

If you discharge the bank loan then the company has nothing but potential contacts for whatever product/service it may be providing. Without at least some track record of sales/profit it would be very difficult to realise anything from an attempt to sell the company. That of course depends on what it is you were doing and how valuable that might seem to a potential purchaser, assuming that they couldn't make the same contacts / sales themselves without buying your company anyway.