Business owners - a Check list preparing you for a sale

• Who owns the business?

  If the business is owned by a company, are you selling the business or are you selling the ownership of the company shares?

  Is it a partnership or are you the sole owner. Or may be it is owned by a Family Trust?

• If you are renting premises for the business, have a copy of the lease ready for inspection by the buyer.

  Check your lease and speak to the owner about transfer to the buyer? Or is the buyer likely to want a new lease?

  Is your rent up to date? If you have been a difficult tenant, you may find that your landlord will now get his pound of flesh.

• If you are leasing or hiring equipment for your business, have you spoken to the financier to receive its consent to the transfer of the equipment. Get all the documents for the transfer from the financier and read them.

• Most often the goodwill of the business is sold as the major asset. What else are you selling -

  • stock and at what value? What about old unsaleable stock?

  • rights to telephone and fax numbers?

  • customer lists and records?

  • have a full list of the equipment that you are selling together with depreciated values from the last tax return.

  • Have you paid advertising in advance? Do you wish to be reimbursed for that?

  • And what about the latest? Do you have an Internet Domain name registered? How is that going to be transferred to the buyer?

• Will your employees remain with the new owner? And what about employee entitlements?

  Ia particular employee necessary for operation of the business?

• Are you prepared to assist the new owner?

• Are you sure you do not want to remain in the same industry or are you going to work for a competitor of the new owner?

You should even speak to your lawyer before you place the business on the market! You may receive some further guidance and even a draft agreement that may be used.

In the end, the more preparation you put into it, the easier it is likely to be.