And the most unsettling thing for SMEs is uncertainty. Good times or bad times SMEs are often better positioned to adapt quickly to change providing they know what to expect.
So what predictions can we make with a reasonable degree of certainty?
So you’ve reached an agreement on price. But, there are differences between the parties on how the sale price should be apportioned across different assets.
A solution that’s sometimes proposed is to simply show the sale price on the contract and let both sides manage their own apportionment but this depends on what assets you are buying. Try and avoid this trap.
From these two groups, what is evident is that there will be a significant number of businesses that will come on to the market in the coming years or that will be managing some form of succession. Apart from business sales it could be a merger, generational succession, management buyout or even a listing. On the sheer numbers alone we are talking about over 400,000 businesses.
A. There are two key pieces in the sale of a business. One is the structuring of the transaction the other is the positioning of the business to the market. Both pieces are important and can significantly impact your result.
A. The first thing you need to determine is why you are doing this. Are you trying to tie them to the business, provide some recognition for them or is it part of a larger succession plan where you hope one day they may buy out your interest in the business? Understanding the reason is important because it may influence the arrangements you put in place.
Hayes Knight is the brand name of the Hayes Knight group, a network of independent firms across Australia and New Zealand. Each firm within the Hayes Knight group is, and acts as, a separate legal entity. Liability for each Australian entity is limited by a scheme approved under the Professional Standards Legislation.
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