Selling a Business
Selling your business is one of the most important financial decisions you will make. It is important to seek legal advice in order to maximise your return whilst reducing risk. Here at BDN Lawyers, one of our experienced lawyers can assist you in navigating the process to ensure you receive the benefits of your hard earned labour.
Selling a business is a process of due diligence and business acumen. Considering whether your business is ready to be sold and if the market is right are some preliminary questions to ask yourself. Once those questions are answered and you are still looking to proceed, the first step is to have your business assessing to determine its value and asking price. You can either do this yourself or employ a professional valuer. Valuing a business is not only looking at the tangible aspects to the business but also, evaluating the intangible value. Things to consider when valuing your business may be one, a couple or all of the following:
- the business name and trading name
- any plant and equipment used in the operation of the business
- any intellectual property
- stock in trade
- licences and permits owned by the business and
- key customer contracts and
The price of goodwill is the difference between the tangible value of the business minus the asking price of the business. Goodwill is very much determined by the reputation your business possesses. This can be difficult to assess and guidance from an experienced lawyer from BDN will ensure this aspect of the sale is included in the sale price.
How to sell your business is also an important aspect of maximising your return. You can either do it yourself via paper or online websites or employ a professional agent (Business Broker or other). Financial advice with regards to any Goods and Services Tax, Capital Gains Tax and Stamp Duty implications is also an important aspect in the process. Regardless of what you decide, this is an important consideration to make in your decision making process.
Selling your business may involve the sale of property in which the business operates from or alternatively, a commercial or retail lease. Whichever the case maybe, a transfer of the rights in the land will need to occur. Legal assistance is crucial to ensuring the transfer occurs as smooth and seamlessly as possible.
At the heart of any business are its employees. If you employ people as part of your business, provisions need to be made as to their future. Decisions surrounding the termination of each employee and the payout of any redundancy’s and entitlements all affect the final sale price of your business.
To ensure all these aspects of your sale are adequately covered, it is important to seek legal and financial advice. One of our experienced lawyers can assist in developing, negotiating and settling a Sale and Purchase of Business. This may or may not include the sale and purchase of land or the transfer of rights under an existing lease to the new owner of the business.
Whether buying or selling a business, BDN Lawyers can assist you in clearly identifying what it is you are selling and ensure that ownership of the business is passed in the correct form for the best possible price. Our services will ensure correct due diligence to maximise your hard work and minimise risks with selling your business.