Australia is a sovereign country consisting of the land of the Australian continent, Tasmania, and several smaller islands. It’s ranked as the largest country in Oceania.
The population in Australia is estimated to be nearly 24 million. Australia’s Gross Domestic Product (GDP) is predicted to grow at an average rate of 2.7 per cent by 2024. In reality, doing business in Australia is healthier due to a strong policy structure, strong institutions, and an excellent financial system. Similarly, a large portion of Australia’s trade ties with the Asian-Pacific regions is beneficial concerning purchasing power and demand for high-quality goods and services.
How to sell your business
- Get assured that selling is the correct decision:
Analyse the real reason behind your choice to sell your business, and make sure if it’s the right thing to do. Because every potential buyer will ask a general question, ‘Why are you selling your business?’
If you’re selling the business because of monetary problems, think of getting professional advice from a business consultant to make sure selling is the right decision. Selling your business may result in extra obligations to pay, such as employee entitlements or tax amounts from assets sales.
- Get professionals to help:
Look at using a trustworthy business broker, accountant, or lawyer to help you sell your business. Business brokers are the professionals who can help you buy or sell a business. They can help you know legal and government conditions, offer advice about your business’s profitability and provide market trends for your industry. They can make the process of selling your business easier. Make sure you check the professional’s credentials to ensure they’re trustworthy before using their assistance.
- Value your business:
There are different ways to value your business. Three of the most common valuation methods are:
- Analyzing your market – Compare your business to another related business on the market or have recently been sold. It provides you with a guide to your possible market price.
- Calculating the business’s net worth – Compare the difference between your business assets and liabilities. You need to estimate both tangible assets and intangible assets.
- Using Return of Investment (ROI) – Use your business’s net profit to work out your business’s value.
- Prepare a contract for selling the business:
Preparing a contract is one of the most crucial parts of selling a business. An agent will draw up the sale contract for you. You can also have a solicitor check the legalities for you. The solicitor can confirm that the agreement doesn’t include any false statements and covers all aspects of the sale, including the transfer of assets and liabilities, employees and employee entitlements, information about what will happen if any issues arise
- Settle your tax and legal issues:
When you sell your business, you may face a significant tax bill. If you’re not careful, you can wind up with less than half of the purchase price in your pocket after all taxes are paid! However, with experienced planning, it’s possible to minimize or defer at least some of these taxes. The amount of tax that you will finally have to pay depends upon whether the money you earn from the sale is taxed as ordinary income or capital gains. Profit earned from the sale of the business assets will most likely be taxed at capital gains rates, whereas the amount you receive under a consulting contract will be ordinary income.
- Transfer your business to the new owner:
This is the last step in the process of selling the business. Once your business is sold, you need to transfer it to the new owner. You need to:
- Transfer leases, licenses, and permits
- Finalize tax returns, activity statements, and instalment notices
- Cancel your business number and transfer or cancel your business name
Are you ready to sell your business?
If you are looking to sell your business in Australia, the Easy Buy Sell Business for sale center will help you reach potential customers. To sell your business in Australia, register an account with Easy Buy Sell Business and start posting your Australia business for business takeover to expose potential buyers to contact you directly. Totally free business for sale ads listing and no fees involved.