To sell your business, you need to have an effective Business Broker, Accountant and Commercial Lawyer
Your Accountant: is fundamental in producing accurate supporting financial documentation to provide to a buyer, and assists in providing the best tax outcome for the sale
Your Commercial Lawyer: is critical to completion of the sale contracts
Your Business Broker: assists you in the early planning stages and helps you prepare and navigate many processes before you go to market. A broker gives you the best chance to sell your business for the highest amount in the shortest amount of time.
You only have one business to sell - you owe it to yourself to get the right team on board.
Your ideal broker:
Exclusive and Non-Exclusive Agency Agreements
An Agency Agreement formalises the particulars of the sale you are going to undertake and spells out your arrangement and the broker’s fees.
You can negotiate with your broker to have Open, Sole or Exclusive listings
There are three possible scenarios when advertising a business for sale.
Every buyer should undertake some form of due diligence prior to purchasing a business. This process covers everything they need to be comfortable to make an offer for your business.
Due Diligence items for a standard asset / business sale
All information is validated by the buyer, an associate, their accountant and/or other advisors, to give the buyer an overall understanding of the business. Additional information can be provided once a contract has been signed.
Once a sale contract is executed, the buyer is allowed a set time frame (normally two weeks from signing of the contract) to complete their due diligence.
Significant issues arising during the Due Diligence process may result in renegotiation of contract prices and / or terms. If the vendor is not willing to negotiate the buyer may withdraw from the sale completely.
Ensure you engage professionals to assist you if you are thinking of selling, or buying, a business.
In terms of restraint, no buyer wants to find they are in competition with the vendor once the sale is complete.
As a result, every sale contract will have a restraint of trade clause, with the time frame and area it applies to.
You must consider the effects of a restraint of sale.
If you need guidance to grow your business or if you are planning to Buy or Sell your business