Thinking of selling your business? Go through this checklist first

A decision to sell your business is easily one of the most important life choices you will ever make.

Obtaining legal advice before you begin negotiations with potential buyers is essential to making sure that you protect your rigts and get the best outcome for your particular goals.

Here is a brief strating point checklist of the questions that we suggest every business owner should review and answer to determine whether the business is "sale ready".

1. Who is the seller entity? An individual, a trust or a company? Is there an appropriate authority to sell?

2. What are you selling? Assets of the business or shares in a company?

3. What is included and excluded in the sale? Goodwill, plant & equipment, stock, IP, business name, website/domain, customer lists, phone numbers, social media accounts, vehicles, leased equipment, licences, contracts, deposits/bonds, records. Are all these items owned by the seller entity?

4. Have you prepared an information pack addressing your business's:

   • basic profile info and structure

   • financials

   • asset register

   • stock information

   • contracts register

   • IP register

   • insurance and compliance documents

5. Are your business affairs in order?

   • are there any unresolved disputes?

   • are there overdue accounts?

   • are all third-pary arrangements (like equipment hire, leases, licences) current and up to date?

   • are all key contracts in the name of the seller entity? are there any exclusive non-transferrable arrangements?

This is not an exhaustive list of issues that you need to consider and individual circumstances are vital in preparing for a sale of your business. Getting ready to sell can be time-consuming and overwhelming and getting the right professional advice is essential. We can help! Contact Collett Law Group today to get started.

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