Selling a business or transferring it requires careful fore thought. For any business owner this will be a major decision and various topics need to be at least discussed:
- Valuing a Business
There are various methods but essentially it will come down to the future earnings the business will generate whether the owner is there or not.
- Tax Implications
- Entrepreneur Relief
- Retirement Relief
- Business Relief
You can pay 33% tax on the gain on selling a business or avail of various super incentives that are designed to help ensure the business owners and their families continue to operate as a family business or at least do well out of the sale if the re is a profit to be made.
It’s not easy to value a business. For instance, a medical consultants business is only as good as the reputation of the consultant. Once he/she are gone, the business is gone. Therefore, without the owner it is largely valueless.
Also, if a pub is doing well at the moment, what’s the prospects of that continuing going to be based on?
All discussions on selling a business or at the very least valuing it, need to be discussed at the earliest point and the owner to be upfront on what’s on their mind:
- Time frame in mind
- What price they think their business is worth:
- How the price might be financed
- Who the buyer could be and how will they be approached
- Is it a seller or buyers market at the moment