Property rights

Your go-to guide for selling a business

Successfully selling a business requires a diligent and strategic approach that will maximise value for you, the seller. Legally, it involves transferring a collection of intellectual property, assets, rights, and goodwill.

Beyond tangible assets like property and equipment, a significant portion of a business's value lies in intangible assets like goodwill. At P&B Law, we can guide you through the process, covering planning, trademarks, key sales agreements, property leases, terms of trade, and employment agreements.

Preparing to Sell Your Business

Preparation is key, and proper planning can help you boost the value of your business and minimise potential issues that may arise during the sale process. Before engaging a business broker or advertising your business for sale, you need to get accounting advice from your accountant and sound legal guidance from an experienced business lawyer. This proactive approach ensures you're positioned to negotiate the best possible outcome.

Maintaining Your Business's Reputation

A strong reputation is a valuable asset for your business. Purchasers will often be prepared to pay a higher price for goodwill if they believe it will provide them with access to future business security and better profits. So, make sure you proactively address any potential concerns and ensure a smooth reference check. It's also important to handle the sale process professionally and ethically to maintain trust and credibility with your customers and suppliers.

Demonstrating a Strong Trading History

A documented history of success strengthens your negotiation position. Gather and organise financial statements, sales records, and other documents that showcase your business's track record. A well-documented trading history can provide potential buyers with confidence in the stability and profitability of your business.

Developing a Strategic Business Plan

Having a comprehensive business plan outlining future growth opportunities and potential for expansion can significantly enhance the value proposition and attract buyers. P&B Law can assist you in crafting a clear and well-thought-out business plan to demonstrate the potential for future profitability and growth.

Protecting Your Intellectual Property and Trademarks

Ensure any trademarks associated with your business are properly registered and protected from infringement. This safeguards the value of your brand and avoids complications during the sale. Intellectual property rights can contribute to the overall value of your business, so it's crucial to protect them during the entire process.

Securing Key Sale Agreements and Contracts

Documenting key sales agreements with major suppliers and customers will provide clarity and transparency for potential buyers. Having clear and well-documented agreements can help streamline the sale process and minimise potential disputes down the track.

Managing Property Leases

A stable location can significantly contribute to the value of your business. A well-structured, fair lease will ensure that you have a right to remain at the location well into the future and that you can transfer the lease easily to the Purchaser.

Establishing Trade Conditions

Document the terms of trade with strong credit protection and retention of title clauses to safeguard your financial interests during the sale and post-sale transition. Having trade terms in writing can help avoid misunderstandings and disputes during the process.

Retaining Key Personnel

If your business relies on key personnel, make sure they have well-drafted employment agreements to maintain stability during the transition of ownership. This promotes a smooth handover and minimises disruption to business operations to ensure continuity and preserve the value of your business during the sale process.

At P&B Law, our experienced business lawyers understand the intricacies involved in selling a business. Contact us to discuss your specific situation and receive expert guidance throughout the sales process.

Please note: The information covered in this guide is general and should never be substituted for professional legal advice. Contact us for further information.