There are direct costs and indirect costs associated with selling a business. The direct cost, in one way, would be the loss you sustain when you sell a business below your expected price or valuation due to exigencies. Then there are regular costs associated with selling a business and you should allow for these when setting the final sale price.
Agency commission
Manan Business does charge a fee but it is reasonable.
Legal costs
It is vital to engage a lawyer right from the start at the negotiations stage so that all arrangements are legal and to ensure that your rights are safeguarded. Costs may range around $10,000 AUS.
Valuers
It is important to get your business valued and this means engaging property valuers, valuers for machinery and valuers for business as a whole. In this case the fees may come $10,000 AUS depending on the assets valued.
Loan early repayment fees
If you have outstanding loans then these must be repaid before the end of the term in which case lenders may charge an early repayment fee.
Accounts payable
This is a list of your sundry debtors who’s outstanding you have to settle before we can proceed with sale of the business.
Taxes
This includes income tax, GST as well as property taxes and other liabilities.
Employees
Employee dues such as salaries right up to the date of sale, as well as their entitlements such as PF/gratuity/bonus, earned leave or any other perks must be settled in full.
