Business and Owner's Information

To begin the process of selling your business, it’s essential to complete the required forms provided. These include the REIWA Appraisal Questionnaire, the Business Appraisal Value Assessment Questionnaire, and the Business Sellers Checklist for Market Value Assessment.

Financial Information

Owner Duties

We need to have a good understanding of what each owner’s duties are and the hours per week they are actively involved working in the business.

Staffing

Licenses Held by the Business

Licences

Local Government Orders or Environmental Agency Orders

Full particulars of all orders including repair and structural alteration orders issued by a local government authority in respect of the premises in which the business is carried on, or equipment located therein including contaminants are as follows

Sales Information

Seller's Accountant

Property and/or Lease Details

Title Particulars (where freehold is available)

Operating Hours

Plant & Equipment

The following chattels will NOT be included in the sale of the business

These claims normally need to be removed prior to a sale and settlement of your business:

Intellectual Property Rights

Intellectual property owned by business which will be transferred for the benefit of the new proprietor:

Pollution Issues

Carbon emissions/environment/pollution

Trading Conditions

During the last twelve month period between __/__/__ and __/__/__ the following circumstances affecting the business contributed to an improvement/decline:

Restrictive Covenant

The Seller is prepared to enter into a restrictive covenant not to compete with the business being sold for a period of ___ years within a radius of ___ kilometres

Ongoing Assistance from Seller

The Seller is prepared to remain the business (without remuneration) on a full time basis for a period of ___ weeks to help familiarise the Purchaser with the business

Seller Warranties to Agent

a. The business being conducted operates in accordance with local, state and federal law and holds appropriate and current licences from authorities relevant to its business operations

b. The Business offered for sale is being conducted and conforms with the use permitted by the lease and zoning.

c. The Seller shall make full disclosure to the buyer of all wages and employment terms and conditions for all staff prior to settlement and whether or not they comply with state and federal statutes and award legislation.

d. Unless otherwise advised all plant and equipment offered for sale is in good working order and unencumbered.

e. The Seller owns the business and is lawfully entitled to sell the goodwill, plant, stock and other assets of the business which unless otherwise agreed, will be free of encumbrances at settlement of any sale.

Seller Acknowledgements

a. The Seller is aware of the complicated nature of transmission of staff at settlement with regard to long. service leave, holiday pay, sick leave and redundancy payments and acknowledges the need to seek the advice of a professional Industrial Relations Consultant prior to a sale occurring.

b. The Seller acknowledges the complicated nature of the New Tax System (Goods and Services Tax) Act 1999 and capital gains tax legislation, and acknowledges the need to seek the advice of their accountant, lawyer, or and tax advisor prior to the sale of the business occurring.

Business Sellers Checklist for Assessment of Market Value

The assessment of a business’s market value reflects future risk, so understanding the risks of a business is a fundamental requirement for assessing market value. All the factors are summarized into a rate of return that reflects the size of the profit, the industry, the age of the business, and the amount of working capital required to operate the business, to name a few. It is assessed based on a one-owner operator. As such, family involvement is reflected by adjusting the profit with notional wages for the duties of unpaid family members.

Your business is unique, and as such, each feature needs to be factored into the final selling price.

An assessment of market value requires detailed consideration of future maintainable profits and, therefore, a detailed understanding of how the business will potentially trade in the future is a part of the process.