Selling a Business
When you decide to sell your business, for whatever reason, you will need to take the time to plan an 'exit strategy' in order to get the best return on your investment. Most business owners find the process more gruelling than they might have anticipated.
This section will help you plan the sale, providing a perspective on your and the buyer's expectations and helping you to correctly price the business. Various obligations are covered, such as to your employees and notifications to government, as well as how to find buyers, market the business and improve your chances of a profitable sale.
Suggests a range of questions the prospective business vendor could ask to work out if they are ready to sell.
Describes the different perspectives of vendors and buyers of a business and marketing strategies to maximise sales opportunity.
Outlines the planning process for selling a business, determining the reasons for sale, what assets are included in the sale, sale to family and the timing of the sale.
Oulines the legal and finacial paperwork and statutory requirements for selling a business in Victoria, including the Vendor's Statement.
Describes the value of a fresh coat of paint and improving the physical aspect of a business prior to putting it on the market, as well as fixing up any liabilities that could have an adverse impact on the sale.
Discusses the value of employees in the sale of a business and the need to develop and maintain healthy staff structures that function well independent of the owner.
Describes ways of finding buyers for a business and strategies for marketing the business.
Enumerates the process of valuing a business and setting a sale price, linking to sections on the valuation of businesses.
Provides a checklist of issues to address in selling a business, including preparation for the sale and what nneds to happen after the sale has been made.
Selling a Franchise
Selling a franchise is largely the same as selling a business, but there is the added aspect of your relationship with the franchisee.
If you are an existing franchisee who intends to sell your business, your franchise agreement may require the purchaser of the business to gain the prior approval of the franchisor. In most cases, the purchaser will be subject to the same selection criteria for the system as the original franchisee.
Franchising Code of Conduct
The Franchising Code of Conduct (The Code) provides the following guidelines for selling your franchise:
Under the Franchising Code of Conduct, franchisees who sell their businesses as going concerns are required to provide a Disclosure Document to the purchaser, which, among other things, must include:
- Contact details of the franchisor, franchisee, and background details of each director of the franchisee's business
- Copy of the franchise agreement and lease agreements (if leases are to be transferred)
- Profit and loss statements for the last two years
- Summary of obligations the franchisee has with the franchisor
- Pay details (including outstanding obligations) of each member of staff of the franchisee
All franchisees intending to sell their business should ensure they receive accounting and legal advice from qualified and experienced franchising accountants and lawyers.