So, you’ve decided to sell your business. Now you must consider how to structure the sale in the most tax effective way. If you’re not careful, you might end up with less than half of the purchase price in your pocket after all taxes are paid! Here are a few pro tips from Greg Will, the principal of the accounting practice Armstrong Dawson.
Episode Highlights:
- Business sale issues from an accounting perspective
- Common mistakes business owners make when selling the business
- Importance of understaning the way a business goes to market
- How and when small business concessions kick in
- Tax savings when the sale is structured correctly
- Difference in tax between share sale versus business sale
- Consider the net proceeds, not just the sale price
- Share class structures in relation to small business concessions
- For large businesses, consider the legal and commercial drivers
When selling a business, it’s important to consider the structure of the sale. The way a business goes to market has significant tax, legal, and business consequences for all parties of the deal. We see issues in this area creep up on many of the matters that land on our desk so that’s why we’re taking the time to talk about it today.
And of course, because we’re not accountants, we brought on board a seasoned professional in the person of Greg Will to help us give depth to this discussion. As the principal in his own practice Armstrong Dawson, he’s no newbie to this area. Moreover, Greg has likewise worked as a partner in first and second tier professional service firms.
We cover a lot of useful tips to be aware of. We talk about the tax considerations for a sale from an accounting perspective and run you through some common mistakes made in this area and what this can cost you.
So, if you are involved with businesses at the point of sale or leading into a sale or indeed you are a business owner yourself who is thinking of selling into the future at some stage, this is really important listening. This is one you can’t miss.
Resources:
- Armstrong Dawson
- Connect with Greg on Linkedin
Check out our other episodes with Greg:
- Getting R&D funding for your business
- How my personal experience in buying a business made me a better accountant and advisor
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Our Business Sales and Acquisitions Services
Aspect Legal has a number of great services that help businesses prepare for a sale or acquisition to help them prepare in advance and to get transaction ready. And we’ve also got a range of services to help guide businesses through the sale and acquisitions process.
We work with clients both big and small and have different types of services depending on size and complexity. We provide a free consultation to discuss your proposed sale or acquisition – so see our show notes on how to book a time to speak with us, or head over to our website at Aspectlegal.com.au
Disclaimer: The material contained on this website is provided for general information purposes only and does not constitute legal advice. You should not depend upon any information appearing on this website without seeking legal advice. We do not guarantee that the contents of this website will be accurate, complete or up-to-date. Liability limited by a scheme approved under Professional Standards Legislation
