Several important factors must be considered when selling a business, and proper financial advice can help you make better decisions.

Maximising Sale Value

When it comes time to sell, planning and preparation can increase the sale price and reduce the taxation and other costs associated with a business sale.

Rands Advisory Group can work with you to implement a process to make your business more saleable and valuable to prospective purchasers. This could occur at any stage of your ownership.

In conjunction with other professionals, we can help market the business and deal with interested parties. We can present financial information for your sales agent and work with you to determine business value and asking prices, as well as any applicable terms and conditions of the sale.

The Sale Process

Like all things, there are right ways and wrong ways to sell your business. Giving an interested party your last few years of tax returns as a starting point is a disastrous approach on many levels.

Your tax returns are relevant, but that is an appropriate step at about stage 5, not stage 1.

There are confidentiality agreements which are an essential early requirement, and you can reduce stress and delay and maximise sales proceeds by adopting a formalised approach to the sales process. Rands Advisory Group can guide you through this process as we have done many times over the years.

Planning and Documentation

The way that the sale proceeds are structured can significantly impact the taxation applicable to the sale. Sometimes, the vendor’s gain is the purchaser’s loss, and sometimes, structuring can help both parties.

Once there is broad agreement on a sale, documenting the sale agreement is important. We work with your commercial solicitor to ensure that the sale agreement not only reflects what has been agreed but also reduces your risk.

When the sale has been finalised, we can work with your licensed financial planner to maximise the benefit of the proceeds’ investment or help you consider your next purchase.