Wanting to Sell Your Business?

For many business owners, a time will arise when they decide they would like to move on and sell their business. Whether it is due to retirement, a desire to change career, or even because of a lifestyle change and relocation, it can be a lengthy and difficult decision-making process.  The recent COVID pandemic has also caused many business owners to re-evaluate and consider their options.

So, when that decision to sell has been made, what is involved in the sale and how can you make that process easier?

What is included in the sale?

Selling a business includes transferring the rights to the property and equipment, goodwill, any stock included, the business name, contact numbers and several other business components to the buyer.   

In general, the sale will include the transfer of your:

• Registered business name
• Business premises (lease)
• Equipment, resources
• Fixed assets
• Supply agreements
• Any patents and trademarks
• Business licences
• Employees

Important Considerations

The first step in the sale of any business is to gather any necessary information, prepare the relevant documentation and have everything in order with your paperwork such as contracts, terms and conditions, employee records, and so on. 

After reaching an ‘in principle’ agreement for the sale, a prospective purchaser will want to conduct what is known as “due diligence" on the business which involves making a number of enquiries and investigations into the business – including checking any licences and contracts held by the business, superannuation liabilities and employee entitlements, and assets held by the business.

Once due diligence has been completed and both parties are satisfied with the deal, contracts can be finalised, signed and exchanged.  At this point the contracts become binding on both parties and a deposit is usually paid.

Depending on the terms of the deal, completion of the sale can be immediate upon exchange of the sale contract or it can take much longer. 

With so much at stake when you are selling a business, it is critical to have the right legal advice and representation to ensure that your rights are protected, the information you provide to the purchaser is correct, and that the correct steps are taken to transfer title, discharge any mortgages and negotiate with the landlord (if applicable) to transfer the lease etc.

At Lamrocks we can provide the advice and representation you need throughout the sale process.  Our experienced commercial team can assist you in preparing your business to sell, negotiating the deal, and then finalising the transaction as quickly and effectively as possible.  If you are thinking of selling your business, contact Brent Jones for assistance on 02 4731 5688.