Anyone who is contemplating selling a business, needs to factor in a number of things. It is also best to seek legal and financial advice from a commercial or property lawyer. Below is a list of the most important things to consider when you want to sell your business.
- What makes up your business? Are there any assets that would be sold individually? This basically amounts to figuring out what you are selling, as part of the business.
- Is there GST to worry about, as with an ongoing concern?
- Are you currently operating the business on a leased property? If you are, will the landlord let you transfer the lease to the buyer?
- What other information are you going to give to prospective buyers? This might include records of accounting, or statements used to encourage people to buy the business. How accurate will they be? Be careful that you do not include inaccurate or fraudulent information while trying to sell the business.
- What will be the implications of selling the business? This includes things like capital gains tax, GST, value of any stock that is still left over, and rollover relief.
- Are all of the financial records well organised and up-to-date?
- Will it be possible for a buyer to keep the business running while it changes hands? They might need to hire new staff, or find new clients to deal with, for example.
- What is the business’ competition like at the time of selling, and how is the marketplace?