Are you looking for a new start?
Or simply think that it is time to move on from your current business?
If you are thinking of selling your business there are important considerations that you must know in order to maximise your return.
The sale price of your purchase must be apportioned between various assets being sold, the most common of which are stock-in-trade and goodwill. Goodwill is a type of intangible property of the business, such as customer loyalty, a long established business, location, branding and colours, personality and reputation. The list goes on. It has been said before that the goodwill of a business is the premium price after all of the physical assets of the business have been accounted for.
Your apportionment of goodwill will really determine the profit that you make on your business once it is sold. If we take the above example, once all of the assets that you have previously paid for have been recouped, the rest is payment for your hard work and dedication as the former owner.
You must be wary though as there are pitfalls in the apportionment of the price of your business. The apportionment may have taxation implications for you and you need to be aware of every possibility.
If you’re thinking of selling your business see our Joshua Hay or Scott Bryant of Bale Boshev Lawyers before you negotiate.
Our Newcastle Lawyers will maximise the return on your business sale.