When the successor wants a different business
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A successor may want the customers but a different production method, or the premises but a narrower trade. Assess the business they propose to run rather than assuming succession preserves everything you built.
That can be a productive change. It still needs a clear account of what continues, what ends and what happens to the remaining obligations.
| Current activity | Proposed future | Question to resolve |
|---|---|---|
| In-house production | External supply | What commitments and quality responsibilities remain? |
| Broad repair service | Selected repairs only | Which existing customer promises need attention? |
| Stockholding | Order-by-order purchasing | What happens to retained and unwanted stock? |
| Several processes | One specialist process | Which shared equipment and services are still required? |
These are illustrative comparisons. The actual arrangements need operational and professional review before commitments.
Ask for the reason behind the change
The successor should explain how the proposal works for its intended customers and resources. A statement that a machine is old or rarely used is not enough to establish that its capability is unnecessary.
Use the equipment requirement sheet to connect assets to activities. Seek competent assessment where technical dependencies are uncertain.
A fictional successor plans to outsource a process but has not checked the capacity or terms of the proposed supplier. The old equipment cannot sensibly be labelled surplus merely because outsourcing appears in a draft plan. The missing evidence belongs in the proposal review.
Identify the work left behind
Changing the operating model does not automatically remove earlier obligations. Ask advisers and responsible managers to examine customer, employee, contract and records questions affected by the change.
The partial-business proposal focuses on the remainder where a successor takes only one part. Keep that remainder visible in the closure scope instead of assuming the successor will deal with it later.
The retiring owner also needs to understand any support expected. A changed model may reduce their involvement, or it may create new questions the successor expects them to solve. The technical judgement guide can test that dependency.
Once the future operation is sufficiently clear, record assets required, excluded and still undecided. Update the record when the model changes rather than allowing an old list to become the disposal instruction.
Share the authorised surplus scope with UK Auction Group. Explain the operating change that releases the assets and any conditions still outstanding. The asset sale should follow the examined business model, not force it through assumptions made during an early conversation.
Explore succession and owner exit.
Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.