Selling a business in order to retire, or to make lifestyle changes or to simply realise an investment that has appreciated requires some advance planning. As well as the financial concerns, there may also be personal and family issues to consider. Whether you’re selling an investment, or the result of your life’s work, getting expert legal and financial advice before you sign any agreement is essential.
Selling a business
Ideally, planning to sell your business begins when you buy it – or even beforehand. Even if you’re just beginning to think about selling your business you could consider the following:
Personal and family
Are there any family members with a financial or personal interest in the business who may wish to purchase it? How could this be financed? Could you remain a partial owner and/or retain a role in the business for a period of time?
Competition and the owner factor
Can the business run without the current owner/manager? Is it profitable and likely to continue being profitable? Does the business have the potential to continue growing? Is there a sustainable competitive advantage?
Are your staff likely to continue employment under new ownership? Do they have special skills that are essential to the running of the business? Do any of the staff have equity in the business? Would any of the equity holders or senior staff be interested in purchasing the business?
Timing and tax
The business may need to be restructured before it can be sold. There may also be tax issues to be addressed. Contact your solicitor and your financial advisor early to make sure your exit strategy is in place ahead of time.
Thinking about selling your business?
Property Law Service can help you complete a hassle-free property sale. Before you sign any agreement, please contact us for advice or talk to one of our team on 0800 PPTYLAW (0800 778 952) or +64 6 3705102.