A. Selling Your Business
Selling your business is about more than putting a ‘for sale’ advertisement in the newspaper or engaging a broker.
Before you sell, there are a few key questions you need to consider:
- What’s the best time to sell or when do I need to sell?
- What is my business worth?
- What can I do to improve the value of my business before selling?
- Who will buy my business? Is my business saleable?
- How should the sale be structured?
- What are the tax implications of selling my business and how can I manage the tax consequences?
Armada Accountants & Advisors will take you through a unique sale of business process that we have refined over many years of working with clients. We work with you to:
- Define where your business is at
- Understand the value of your business and arrange any independent valuation
- Prepare your sale timetable
- Map your sale of business plan
- Undertake any business improvements (after all, you wouldn’t sell your house without tidying up!)
- Perform a pre sale due diligence process to ensure that there are no problem areas that might impede the sale
- Assist with the sale process and contact with potential purchasers and
- Manage any post settlement issues and your tax position.
B. Managing Generational Succession
Generational succession is when your business is passed to family members, generally your children. With generational succession, there is continuity of family ownership and often the business itself.
Sounds simple doesn’t it? Then why do so many families end up in dispute right at the point when the parents, business and children are most vulnerable? It is important that generational succession is managed as closely and diligently as if you were selling your business to a stranger. Making sure that everyone understands what the transition will mean and that everyone is aware of their role and responsibilities, avoiding misunderstandings and disputes.
If you are looking to hand your business to your children or relatives, Armada Accountants & Advisors will help you work through the key issues below:
- Do your children want to run the business?
- Are your children capable of running the business right now?
- What is your business really worth (business valuation)?
- Are you willing to hand over control of the business and leave the children to take control?
- How will the transition be financed (are your children able to buy you out? Will you maintain an interest in the business? If you do maintain an interest, will you have a role in the business or will you be a silent partner?)
- How should the transition be structured?
- What will the impact of you stepping away from the business be on the customer base?
- What are the tax implications of the generational succession plan? There can be some fairly hefty taxation implications for both you and your children if this issue is not managed correctly!
Be sure that Armada Accountants & Advisors will assist in facilitating a smooth transition.