The following checklist is a summary of key items that may be relevant when selling your business. It is a prompt to get you thinking about things that can often be overlooked. Each business is different and it is important that you obtain advice from your accountant and solicitor at different stages during the process.
Pre-Contract Stage
Financials – speak with your accountant and ensure your financials are accurate and up-to-date;
Lease – is there a lease in place? How long is left on the lease? Can you assign the lease? Is rent and other payments under the lease up-to-date? Is there a bank guarantee or security deposit?
Intellectual Property – is your business name registered with ASIC? Do you have a registered Trade Mark – is there any other registered Intellectual Property?
Communication Details – what phone numbers/emails are being transferred? Are these held in the name of you as owner or in the business name? Are these communication details on a plan? NB– Buyers will naturally want all forms of contact transferred as part of the sale so don’t forget to use work email and mobile numbers for work related activity and keep separate email and phone number for personal use.
Licences & Permits – are these current and up-to-date? Are these held in the name of the vendor entity?
Contracts – are there any contracts that you need to assign the purchaser? This could include lock-in contracts used in the business; – or even arrangements you have with equipment suppliers?
Employees – have a list of all employees (including casuals) including start date and leave entitlements;
Plant and Equipment – check all items in working condition and that you have warranty forms. Note any items that are damaged or broken or to be excluded from the sale;
After we find a buyer After we agree to sales terms you will need an experienced commercial solicitor to prepare contracts and communicate with the purchasers solicitor to prepare for settlement. There are also some things you will need to know about Preparing for Settlement.
· Security Interests – Any finance agreements that the busines shad in place you’re your term of ownership ( No matter how small) will mean that at some stage a finance company has registered an ownership interest in equipment kept at your site. Have your solicitor check the PPSR register early in the process, to see if any security interests are registered against any part of assets within your business.
· Do you have any business loans that need to be paid on settlement?
· Assignment of Contracts & Lease – legal documentation to be prepared and reviewed;
· Transfer Forms – prepare transfer of registration documentation for licences, vehicles etc; · Stock – are there any obsolete, damaged or out of date stock that needs to be disposed of? When will the stock take occur? When are you expecting to be paid for stock by the purchaser?
· Insurances – speak with your licensed insurance broker regarding winding down your insurances;
· Settlement Statement – any memberships, licence fees or other payments that need to be adjusted?
· Business Records – do you have these compiled and organised to be handed over the purchaser?
· Notify suppliers and customers and financiers of the sale and introduce the buyeronly after you are instructed to do so from your solicitor.