Selling a Business

We are running into December 2018,  and what a year!

In November 2018 this website recorded 80,575 “hits”, with an average 2,685 hits per day, or 111 hits per hour. That is a startling statistic.

Over the past 12 months, and more particularly the last 6 months – the best ever- we have recorded remarkable sales, some examples during the last half of 2018:

Industrial area cafes Wagga, Freehold stores Darlington Point and Ladysmith, Leasehold store Wodonga, Wagga City Council land sales, Freehold hotels in Illabo and Tocumwal, Freehold  and lease motels in Lockhart and Wagga, Freehold and lease Hotels in Booligal Mulwala/Yarrawonga, The Rock and Tarcutta; Poker machine entitlements sales;  plus many many various kinds of service and retail businesses with more to come. A clearing sale we conducted in Deniliquin in December this year yielded an 85% success rate.

We are constantly looking at ways on improving our marketing, and it is definitely working. We are getting committed buyers faster. Finance is always a problem but we feel confident in our solutions there too. And our  service area is growing now into Central Western NSW, with listings in Orange to follow.

 

Below are a few tips for consideration when you are thinking about selling your business.

When is the best time to sell?

Probably when the business is well established and generating good profits. Always allow a reasonable selling period – typically up to 6 months or even longer.

So what documentation is needed to sell your business?

  • Up to date financial statements, including copies of recent Business Activity Statements (BAS);
  • A list of equipment to pass with the business, and whether it is encumbered ( i.e. leased/ chattel mortgaged etc);
  • A copy of your current lease, or alternatively a proposed rental or sale price for your property;
  • If your business is located in Victoria, and its plant & good will figure is less than $450,000, you will also need – at the time of deposit or contract – a vendor’s statement (Sn 52)  about the performance of the business.