Selling a Business
Are you selling a business to fund retirement or just moving on to your next venture? Would you buy the business at your asking price? Before you answer that question, ask yourself if your business ready for sale?
Getting a good price for your business is all about providing reliable records that demonstrate your businesses performance and future viability. If you are thinking about selling a business the purchasers accountant will request and review the following records:
- Net profit
- Return to owners
- Client Lists
- Sales Analysis
- Current Assets V. Current Liabilities
- Balance Sheet
- Profit & Loss
- Staff and their entitlements
- Tax & Super Liabilities
How does your business stack up? Let BWD Accountants review the health of your business before you put it on the market.
Things to consider when selling a business
- Sale of a going concern
- Winding up a company / GST consequences
- Lease and other agreements
- Finalising employee or contractor obligations
- Record keeping obligations
- Cancelling registrations
- Sales contract issues including stock to WIP.
What’s a fair price to ask for when selling a business?
After his initial review, the purchasers accountant would want to be satisfied that the results of the business over the last 3-5 years support the asking price!
So would you consider that the price you are asking would support the net profit and return to the owner in order for them to repay their purchase price in 3 – 5 years? If not there maybe some work to do.
Call BWD Accountants for an assessment of your business!