Take Care When Selling a Business
Selling a business requires careful planning around your goals as it makes a big difference to marketing strategy, negotiations and the terms of contract.
Why are you selling? Cash flow problems? Need to raise finance? Don’t want to retire completely but just ease back?
What are you selling? Is it the whole or part only of a business? Are you directly selling business assets or shares in a company which owns the assets? Does the business include real estate? Are there any business assets you want to keep, such as vehicles?
Due diligence inquiries are critical when you are buying a business but are often overlooked when selling. It is important to ensure that your information is guarded by confidentiality agreement, that your needs, if any, to remain in the workforce following a sale of your business, are negotiated, that steps are taken to release you from liability to current trade creditors and to your landlord, that appropriate adjustments are in place regarding entitlements for continuing employees, that reasonable tuition periods are prepared, that adequate security is in place if you are providing vendor finance and a host of other steps.
We will work with your taxation and financial advisors in structuring the sale, particularly to help cover CGT rollover relief, small business taxation concessions and apportionment of the sale price between individual assets comprising the business.
You’ve worked hard in your business and now it’s time to reap the rewards!
The importance of choosing the right advisor.
Whether buying or selling a business there are traps for the unwary and it pays to get sound, reliable expert advice from the outset.
Our Mr Steve Rees knows a thing or two about business. He was a partner in an established Toowoomba legal firm for 10 years and, for the past 21 years, has been principal of ReesLaw. In that time he has assisted many business purchases and sales.
Our Ms Kathryn Millist-Spendlove is an accomplished commercial lawyer. She draws on over 9 years commercial experience in private practice and in-house roles and 3 years as a barrister in Sydney.
We explain steps in plain English and keep you informed all the way.
Call us for an obligation-free discussion.