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Selling a Business

Selling your Business

There are a number of factors to consider when selling your business, one of the most important being how much you would like to sell your business for.
You only get one chance to sell your business, so it’s important to get it right. Here are some suggested steps to guide you through the process.

 

1. Make Sure Selling is the Right Decision

If you’re thinking of selling because of financial problems or because you find it hard to comply with government regulations, consider whether getting help or advice might put your business back on track.
You’ll also need to consider how selling your business will affect your personal and financial circumstances.
At the end of the day you need to be certain that selling our business is the right decision for you.

 

2. Value Your Business

Valuing your business is about working out how much your business is worth, so that you can set the right price when selling.
Refer to value your business for some common methods of working out the value of your business.

 

3. Selling Your Business

Well, you’ve come to the right place to sell your business! Mid North Coast Business for Sale is the perfect platform to showcase your business, and to make it available to 24 million + Australian’s.  Get found on Facebook, Google and all of the other major search engines.  We also specifically target individuals looking to buy a business on the Mid North Coast of Australia.
Let’s face it, it’s no use advertising your local business to someone that is only looking to buy a business in Tasmania or South Australia eg: where they live.  You want to advertise to individuals that are specifically looking to buy a business on the Mid North Coast, or those that are looking for a lifestyle change by moving to this area.  Those people are our target market!!  As mentioned previously, your add can also be found and seen by the other 24 million + people in Australia – but the primary focus is on genuine business buyers specifically wanting to buy a business in Forster, Taree, Port Macquarie, Coffs Harbour and the other surrounding areas of the Mid North Coast.
List your business for sale with us, and you add can be live in just a few minutes.
If you need help writing your add let our professional sales team write it for you.  Simply contact us for further details about this service.
Even if you do decide to list with a business broker or commercial real estate agent, we would still recommend keeping an active listing with Mid North Coast Business for Sale.  We have a much larger advertising base and our team specialises in digital marketing.  We can save you thousands of dollars in broker and agent fees!  That’s more money in your pocket!
You don’t have to handle the sale of your business alone, you can still engage the services of a solicitor to guide you through the process, and handle the exchange for you.  Check our Professional Services Directory to find local Solicitors and Accountants.

 

4. Negotiate with Potential Buyers

When negotiating the sale, make sure the information you give about your business is accurate and correct. If you say anything or provide information that is later found to be untrue, it may be considered misleading or deceptive behaviour.
You’ll need to agree with the buyer on a range of things, including:
  • the sale price
  • the deposit amount (usually 10% of the sale price)
  • the settlement period
  • handover training (if any) for the buyer
  • arrangements for existing staff.
You may need to compromise on some things to get the best outcome. For example, if you’re keen to settle quickly, you could encourage the buyer to agree to this by offering a lower sale price.

 

5. Prepare the Contract

Generally, a solicitor draws up the sale contract. The contract will also be checked by the buyer’s solicitor.
Solicitors should check that the contract doesn’t include any false statements, and covers all aspects of the sale, including:
  • all the relevant assets that are being transferred, including property, equipment, fixtures, fittings, stock, and any rights to use any names
  • all the relevant liabilities, including creditors (people or businesses that your business owes money to) and the lease of the business premises
  • responsibility for employees and employee entitlements, including whether employees are to be transferred with the sale (if the new owner isn’t an ‘associated entity’ – related to the old business in some way – they don’t have to recognise some entitlements)
  • statements about what will happen if any issues arise (for example, the buyer decides not to proceed, inaccuracies are discovered in the contract, etc)
  • any restrictions on trading in your profession after the sale (to prevent you from competing directly against the new owner).

If you do decide not to use a solicitor,
there are tools that you can use to generate your own Contract of Sale, some examples are below;
https://legalvision.com.au/documents/sale-of-business-agreement/
https://lawpath.com.au/legal-documents/business-sale-agreement

 

6. Take Care of Employees

When you sell your business, your employees may either:
  • transfer with the business to the new owner, or
  • end employment with the business.
It’s important to communicate with your employees and let them know whether they’ll be transferring across to the new owner or ending their employment due to the sale of the business.
In both cases, a transfer of business ends an employee’s position with you, the former employer, so you must give your employees notice of ending employment or provide payment in lieu of notice.
When employees transfer with the business, you’ll need to give all relevant employee information to the new owner. There are some employee entitlements that the new owner must recognise and others that the new owner doesn’t have to recognise.
Find out more about Employees and selling or closing your business.

 

7. Deal with any Tax Implications of the Sale

Consider whether Goods & Services Tax (GST) applies to the sale of your business. For example, if your business is registered for GST, you may need to include GST in the price of individual business assets or repay GST Credits.  Your accountant can advise you on this.
If you are selling a small business, CGT concessions may be available.
If you cannot pay your taxes on time, you may be able to get help through an ATO payment plan.
Find out more about taxes when selling your business on the ATO website.

 

8. Transfer Your Business to the New Owner

Once your business is sold, you’ll need to transfer your business to the new owner. This includes:
  • transferring leases, licenses and permits
  • finalising tax returns, activity statements and instalment notices
  • cancelling your ABN and transferring or cancelling your business name.
Find out more about what you need to do when changing ownership of your business.
Watch the Australian Taxation Office’s webcast on selling and closing your business

 

9. Look After Yourself

Selling your business can be an emotional time. After all, you’ve probably put in countless hours, money and energy.
It can be difficult and stressful saying goodbye to a business that you’ve started or owned for a long time.
Once the business is sold, give yourself a well deserved break and some well deserved rest time!

10. Celebrate

You chose to sell your business for a reason and should celebrate the success once the business is finally sold.
You can now move on with your next new venture and the next new chapter of your life!

 

 

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