I want to sell my business
Is your business ready for sale?
It is wise to always have in mind that one day you will want to sell the business, even if that may be years away.
We can help you get the best result!
People will look at a number of factors before they buy your business.
You should always keep in mind that these questions may come:
- Is the business dependent on one major client or customer? If that client or customer stops dealing with the business will the business survive?
- Is the business dependent on one major supplier? If that supplier stops supplying to the business are there alternatives to ensure that the business will survive?
- Is the business dependent on any particular employees? Are there plans in place to reduce dependence on them?
- Do the customers or clients only relate to one particular person in the business, such as the owner? If so will they transition to someone else? Otherwise what is there to sell?
- Are all systems and procedures properly documented and followed by all?
- Does the business comply with all legal requirements including but not limited to Tax, Occupational Health and Safety and more?
- Are any particular licenses required to operate the business?
- Is there security of tenure for the premises occupied?
- Are you able to provide independent evidence of your sales figures, such as for example by reference to BAS statements or Income Tax Returns?
- Is this business in the same legal entity as another business that is not being sold to the same purchaser? If so that may make it more difficult to prove sales figures and to segregate assets.
- Have you planned appropriately for Capital Gains Tax?
- Are you eligible for the small business Capital Gains Tax concessions?
We would be happy to discuss these and a number of other matters with you.
I want to buy a business
Buying a business is an exciting step to take in life but it is a big step and the decision must not be taken lightly.
It is important that you fully understand how the business operates, its profitability, what it is worth to you and the risks you face if you proceed. We are experienced in this field and we highly recommend that you seek our professional advice as well as legal advice during your due diligence process.
Buying business doesn’t need to be stressful with the right help.
It’s not just about the money!
There are a number of other important factors to consider:
- Will it provide the profits or lifestyle you are after?
- What does the financial history look like and what is the likelihood that performance will continue? Will it get better, worse or stay the same?
- What is the asking price? Is that reasonable?
- Why is the business being sold?
- What assets and liabilities does the business have? Are they part of the sale or not?
- What structure should you use for the purchase? What are the tax implications?
- How will the purchase be financed?
- What are the initial working capital requirements?
- How long have the staff worked in the business, are they happy or is it possible they may leave if you buy?
- Does the business need restructuring?
- How has the company performed short term and long term?
- Is the goodwill figure being overestimated?
The bottom line is that the business has to be able to meet your goals, whether they be income and wealth related or lifestyle related – or a combination of both.
We will assist you work through these issues to enable you to make your decision with clarity – whether that is “to buy” or “not to buy”. If you decide to buy we can then continue to assist your transition into operating the business and growing it over your years of ownership.