By Helen Kay of Rise Legal
It is important to be well prepared and organised well in advance of putting your business on the market for sale. This will not only avoid costly delays but could also maximise the value of your business.
Helen Kay from Commercial Law firm Rise Legal has provided some tips to assist you in preparing to sell your business….
Be clear on exactly what you are selling
If the business is being sold, you should prepare a detailed schedule of all the plant and equipment and furniture, etc. that is included in the sale as well as a separate schedule of what is excluded.
You must let the buyer know which (if any) of the plant and equipment is subject to hire purchase agreement or equipment lease, etc. If you are unsure, your lawyer can conduct a search for you at the Personal Properties Securities Register.
You should be one step ahead in contacting the relevant companies and obtaining discharge certificates or arranging for the transfer of the hire purchase agreements, etc.
Formalise any important contracts
If your business is reliant upon certain key suppliers, customers or employees you should make sure (where possible) that formal written agreements are in place before the sale as this could enhance the value of your business to a prospective buyer:
- convert any verbal agreements into written agreements as soon as possible; and
- review any existing contracts with suppliers and customers to ensure they are still current and can be easily assigned to the buyer.
Get your lease in order
- If you lease your business premises it is important to review your current leasehold arrangements and determine:
- How long is left to run on your lease – If your lease has expired and you are holding over, or if there is only a short period left to run, you may consider negotiating a new lease or an extension with your landlord.
- What the assignment conditions require – Your landlord could be entitled to withhold their consent to the assignment of lease if these conditions are not satisfied, so it is important to be aware what they are and what the landlord can ask for.
This is just a snap shot of some of the things you should think about getting organised prior to sale.
(Please note that this article has been provided for information purposes only and does not constitute legal advice.)
For further information or for your FREE SELLER’S CHECKLIST please contact Helen Kay at Rise legal. Contact Helen via www.riselegal.com.au
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