It's All in the Timing When Selling a Business

Published 08 Jun 2012
Jessica Diep, Chris Maley

Whilst Australia managed to avoid the worst of the recent global financial crisis, the ramifications on Australian businesses were felt for quite some time.   Small-medium sized businesses particularly reported that less spending and lower consumer confidence hit their businesses hard and for those that survived the crisis, recovery has been slow.

During the height of the financial crisis, small business-owners thinking of selling were finding it very difficult to attract buyers because finance was tight, banks were putting the brakes on lending and investors were generally cautious.

Thankfully we are now starting to see the market picking up again and the timing could be right to attract buyers for your business.

If you are a small-medium sized business owner thinking of selling the key to a successful valuation and sale for your business is to PREPARE.  Whether you are looking to sell now, or sometime in the near future, time spent preparing your business for sale will help to get a better result and a quicker transaction.

At Maclarens Lawyers we have experienced commercial lawyers who can help you to prepare your business for sale, in addition to drafting sale contracts and negotiating the deal.   

We can work with your accountants and financial advisers to prepare the information a potential purchaser will need, as well as formalising business relationships and ensuring that all of your legal documentation is up to date (including lease agreements, employment contracts, client and supplier contracts, distribution agreements etc).  We can also help you to determine an appropriate sale price, taking into account all of the various tangible and intangible assets such as goodwill, reputation and trademarks, and any leasing arrangements in place.

After working hard to establish and run your own business, selling it is a major decision and one that is never taken lightly.  By adequately preparing your business you will ensure that the process runs as smoothly as possible and enables you to achieve the best possible results.

For more information on selling a business, or purchasing one, contact Chris Maley at cmaley@maclarens.com.au or Jessica Ngoy at jngoy@maclarens.com.au.  Alternative, call now to discuss how we can help prepare your business for sale on ph: (02) 9682 3777.