//BUSINESSES

Depending on the nature of the business and the Purchasers prior experience, you may wish to allow them to take possession and work in the business for a period before settlement. This time gives you and the Purchaser the opportunity for a smooth handover and for them to understand the current methods and systems used. If you plan to take this option, you should consider whether and how you will remunerate the Purchaser for their time, who will retain the profits for this period and if the you will remain on after settlement. This provision should be made for in the Contract; however, if it has not, we will be able to negotiate on your behalf to make the necessary change. Contact us and we’ll help you assess which option is best for you.

Any investment will inevitably have an affect on your tax situation and the sale of a business is no different. Before proceeding with a sale, you should seek the advice from a qualified taxation expert. Things that should be considered include:

//Q is the purchase subject to GST
//Q who is to bear the CGT (if any)

//Adcock’s are not taxation experts or financial advisors; however we are more than willing to discuss with you or your accountant any issues you may have. If you do not have a taxation expert you can speak to, click here for our recommendation Adcock’s do not receive a fee or commission for its referrals

A Form 2, also known as the Vendor Disclosure Statement, discloses all details known particulars in relation to the business. It should also have attached a certificate signed by the Vendor’s Accountant certifying // that the accountant or a person acting on behalf of the accountant has examined the accounts of the business; and // that the financial particulars disclosed appear to be in conformity with the accounts The Form 2 must be issued to the Purchaser upon the sale of a business, where the sale and purchase price is under $200,000. The Vendor is required to sign to confirm its accuracy, and the Purchaser is required to sign to confirm receipt. The disclosure should include any notices issued to the business for breach of legislation, details on the lease how the business operates (company / sole trader) whether the Vendor works in the business etc. A Form 2 is a lengthy document and should be read carefully before signing any Contract. You should also seek the advice of your Accountant regarding the financial state of the business. Purchasers are entitled to have five clear business days, after the Form 2 has been signed, to consider whether they want to continue with the purchase. This “Cooling Off” period is not available where a business is purchased as a result of a tender or exercised right to purchase. You shouldn’t sign any Contract unless you have every intention to proceed with the purchase. Contact us and we’ll have a Conveyancer look at the Form 2 before you sign any Contact

An Assignment of Lease will require to be prepared, this will transfer the existing Lease to the new owners. As Leases can vary in the Terms and Conditions please contact us to discuss your situation.

//Adcock’s are not qualified taxation experts, and you should seek the advice of your accountant BEFORE entering into a contract. Things you should seek advice from your Accountant on include:

//Q do I need to be registered for GST and what does that mean
//Q how is the purchase to be financed
//Q what entity should own the Business
//Q what the long term objective is with the Land
//Q any taxation implications such as CGTand GST

Adcocks will work with your Accountant to ensure the Contract is prepared to look after your interests. Contact us to make a time to discuss your needs.