Things to know when selling a business

Shire Legal

When you are selling a business, you are transferring ownership of a bundle of rights, responsibilities and assets that are used together to create profit for their owner. These rights, responsibilities and assets need to be clearly identified so they can be effectively transferred from seller to buyer.

The components of a business can include:

  • the registered business name
  • business goodwill
  • business premises (lease or ownership)
  • equipment
  • fixed assets
  • stock
  • current orders
  • supply agreements
  • patents and trademarks
  • business licences
  • debtors
  • employees

QuestionOther considerations include:

  • should the prospective purchaser sign a confidentiality agreement?
  • will any unpaid accounts (debt) remain with the previous owner, or will the right to recover the debt be transferred to the new owner?
  • what are the taxation implications?
  • have all representations made to the prospective purchaser been accurate?
  • what consents and approvals are required for the sale to proceed?

What is included in the sale value?

When…

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