SELLING A BUSINESS
Something differed from the sale of property, there is no requirement for a Contract for Sale of Business to be prepared prior to the business being offered for sale. Once the terms of a sale have been negotiated, your agent should provide your licensed conveyancer and the legal representative acting for the purchaser with a “Sales Advice” Notice. When this Notice is received, JP Conveyancing Associates will prepare the Agreement and forward it to the purchaser or their licensed conveyancer/solicitors; When the agreed terms have been finalised, the Contracts will be officially exchanged and binding on both you as vendor and the purchaser.
Things you should consider at the negotiating stage:
- Sale price, and the number of completion days;
- Apportionment between the goodwill, plant and equipment. (please obtain advice from your accountant)
- Period of training, if any, you are prepared to provide the purchaser both after exchange and/or completion.
- Any restraints which will restrict you from operating and/or working in a similar business to the business being sold within an agreed distance and for an agreed period of time.
After Exchange through to Settlement:
Once the above terms have been agreed upon, JP Conveyancing Associate will begin preparing the Contract which will include a list of all plant and equipment, a list of any existing business employees, the registered business name details and copy trademarks etc where applicable and proceed to do the following on your behalf
- Exchange contracts;
- Answer questions on business titles;
- Arrange for the execution of all transfer documents by you;
- Take your instructions in relation to the discharge of any mortgage or charge against the business;
- Arrange for execution of any transfer/assignment of lease documents; and
- Arrange and attend to the settlement.