{"id":7665,"date":"2023-07-28T13:00:37","date_gmt":"2023-07-28T03:00:37","guid":{"rendered":"https:\/\/www.coulterlegal.com.au\/?p=7665"},"modified":"2024-01-11T14:14:05","modified_gmt":"2024-01-11T03:14:05","slug":"selling-a-business","status":"publish","type":"post","link":"https:\/\/www.coulterlegal.com.au\/selling-a-business\/","title":{"rendered":"Selling a business \u2013 what you need to consider"},"content":{"rendered":"

In this two-part article series, we highlight what to look for when buying a business and what to consider when selling a business. No matter which stage of the business ownership lifecycle you\u2019re at, having an understanding of both ends will give you competence and confidence. Understanding the legal issues you could encounter and the value exchange will help you get the most out of your asset.<\/p>\n

Selling a business is an exciting time where you potentially reap great rewards from hard work. However, it\u2019s a process that requires preparation and planning to execute well. Through preparation, you maximise the value of your business when your business is in order. You\u2019ll attract more buyers, a higher sale price and a fast sale. In part two of this series, we\u2019ll cover what\u2019s involved in exiting a business, the steps you need to take and how to hire the right business lawyer.<\/p>\n

What is involved in selling a business – why should you hire a business lawyer?<\/h3>\n

Understanding what\u2019s involved in selling a business minimises your risk and protects the investment you\u2019ve made building your business. Selling a business requires preparation and planning. A lawyer can provide legal advice, review your documentation and guide you through the sale of your business. Here are the steps you can expect to take when selling your business:<\/p>\n

1. Value your business<\/strong><\/p>\n

Selling your business first involves valuing it. There are various ways to do this, including analysing your market, calculating your business\u2019s net worth (assets minus liabilities) and using return on investment (ROI).<\/p>\n

2. Find buyers<\/strong><\/p>\n

You\u2019ll then need to find buyers interested in your business. Advertising the sale of your business can be done through business brokers or real estate agents, word of mouth or your network. You can also use digital marketing or traditional media such as newspapers.<\/p>\n

3. Negotiate the sale of your business<\/strong><\/p>\n

Once you\u2019ve found a buyer, you need to agree on the sale price, deposit amount, settlement period, handover and arrangements for existing staff. Negotiation is an important step. All information provided about your business must be entirely accurate to minimise the risk of any claim of misrepresentation or breach of warranty by the buyer.<\/p>\n

4. Prepare the documentation<\/strong><\/p>\n

As the seller, you will be required to provide the following documentation to the buyer:<\/p>\n