Preparing For Sale of Business
The more time you have to prepare your business before putting it on the market, the better. Are there any legal issues which will send up red flags to potential buyers? Are your Company records, supplier and partnership agreements current and up to date? A simple due diligence check into your Company’s background can save a lot of hassle down the road.
Buyers may also be put off buying your business if there’s a risk of problematic employment relations moving forward. To help get your business in the best position to sell, Godfreys Law can also help you work out any Employment Issues.
A business broker will expect you to put together a buyers pack with important information about your business. How much information do you want to share? A confidentiality agreement will prevent people leaking classified or privileged information to your competition.
Your Intellectual Property can make up a lot of your business’ value. Any systems, processes, or information you have created to give your business an edge. While you need to show potential buyers what they will be getting, you also need to make sure that edge isn’t easily stolen. We can make sure your intellectual property is protected and registered, enhancing your business’ value.
Structuring The Sale
Does the person buying your business know exactly what you are selling? While it sounds obvious, there are many components to a business. Your buyers pack and Sale Agreement must be clear about what’s on offer.
Are you selling your shares in the Company? Does the sale price also cover the stock? Are any machinery, vehicles or assets included? Will you also be providing training during a handover period, which you want to be paid for? Our team can work closely with your Accountant to prepare the sale terms, paying close attention to any tax implications, to make the sale of your business a smooth transaction.