Things to consider when Selling your Business ? Part 2

There are a number thing's to consider before selling your business. In this article we will discuss Tangible Assets, and the New Owners.

Tangible Assets: Will you be selling the real property, plant, equipment, furnishings? Are current leases with third parties transferable?
If retaining ownership of any asset after sale, determine how best to lease these assets so that your interests are protected and the arrangement is attractive to a new business owner.

The purchaser will want security to maintain ?location goodwill? in most instances and continues use of equipment so there is no hold up in business processes, on purchase, so ensure that any ongoing leases result in a win win situation for you both.
Your purchaser may not want to purchase all your assets. Where does this leave you? Will it be costly for you to dismantle, sell, or discard and what tax effect in these situations?

Your accountant is best placed to assist you with assessing the impact of sale, retention or disposal of tangible assets.

The New Owners: The new owners are likely to be keen to get stuck into your business and implement their plans.

In most cases the contract will involve some period of handover, by you, to assist the purchaser get know your customers and familiarise themselves with other parts of your business. Do you wish to provide vendor finance? Do you want to stay on to assist the purchaser? If yes, for how long? Consider the circumstances and ensure the contract covers various scenarios. Often the new owner will want to fly solo, earlier than the contract states, and also often before he is ready. His problem, not yours, unless it has the potential to affect a retention clause of the contract.

Be very clear with your lawyer to ensure that all your interests are protected as often the contract will have a retention clause related to continued custom, by your current customer base.