Just as consumers should engage a qualified electrical contractor to conduct electrical work, it is important to engage professional service providers when selling a business.

It is a complex and time-consuming process, often with many tax and legal issues to consider. You’ll also want a top negotiator on your side when dealing with potential buyers.

Three essential professional services you need to engage when selling your business

Engage a business broker

It’s important to engage a business broker as soon as possible. A broker will provide you with invaluable guidance including ensuring your business is ready for sale. Most importantly, they’ll help keep emotions out of all sale negotiations. A broker will also act as an essential buffer between you and potential buyers.

When selecting a broker ask for referrals from friends and colleagues who have sold their businesses. If you engage a broker without a referral, be sure to ask for references and conduct an online search for reviews of their business.

Note: most brokers work on a commission basis, and many will charge an upfront fee for marketing costs plus an initial fee for preparing a sale brief.

Speak to a lawyer

You may also need to consult a lawyer to ensure you are meeting legal obligations. These will typically include:

• Notifying the ATO of the business sale.
• Cancelling local licences or permits.
• Informing creditors in advance of the sale.
• Notifying the Australian Securities and Investments Commission of the sale – if you are trading as a company.
• Transferring titles on lease agreements including property, cars and equipment.
• Transferring or cancelling business licences.

A lawyer will confirm your legal obligations and provide guidance around these matters and provide advice regarding the sale or retention of your registered trademark.

Speak to your accountant

Speaking to your accountant is the next important step. Your accountant can provide guidance if business structure changes are required and will ensure your books are in top shape. This includes the true position of the business balance sheet which should include employee entitlements or value of stock.

If you are thinking about selling your business and would like initial guidance, Master Electricians can contact the MEA Employer Relations Team on 1300 889 198 to discuss first steps. In article three, we’ll provide an overview about valuing your business and what to consider when getting your business affairs in order.

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