How an Accountant Can Help You Buy and Sell a Business
If you’re looking to sell your business, then you want to get the maximum sale price possible. Am I right? Likewise, if you’re looking to buy a business, you want to purchase it for the lowest price possible, correct?
Whether you’re buying or selling a business, it pays to have a qualified account involved in the transaction. Moreover, it pays to have an accountant assess your position before listing your business or making an offer.
Continue reading to discover how an accountant can help you buy and sell a business on the Gold Coast and Tweed Heads.
Table of Contents:
Table of Contents
Buying a business
Provide due diligence on potential acquisition business
In the due diligence process, Grow Advisory Group accountants will examine the business you want to buy under a magnifying glass. We will clearly and precisely understand the businesses’ operations, staffing requirements, operational costs, cash flow, and RIO/profit. Additionally, we will provide historical sales figures and other pertinent figures to help assess whether or not a business purchase will be a good or bad investment.
Property due diligence will prevent any unexpected surprises after the sale.
Determine what is being sold with the business
I can be difficult to understand just what it is you’re actually buying. Grow Advisory Group accountants will examine the business sale structure to determine if stock and assets are included in the asking sale price.
Selling a business
Determine the value of your business
Do you know how much your business is worth? Even if you have a set figure in your mind, is it realistic? There are many ways to determine the value of a business. You only have to search Google to find various valuation calculators and methods. But do they apply to you, and is it an accurate assessment of the actual value?
There is only one way to determine the true value of your business, and that is with an accountant. Grow Advisory Group accountants will assess all aspects of your business based on past performance to give you a good idea of its actual value through a detailed evaluation report. A business evaluation report is a compilation of either profits, turnover, assets, or a combination of each.
Ensure the sale structure
When you sell a business, you need to sell it as a stock sale or an asset sale. Either, you are selling it with stock alone, or you’re selling it with all company assets (intellectual property and equipment). There are pros and cons of selling your business either way, and the tax implication between each can be considerable.
Grow Advisory Group accountants can help assess each option to determine which method is best for you and your financial situation. Our advice can lead to substantial tax savings. We will advise on the most tax-efficient option to finalise the deal.
Prepare financial documentation
For potential buyers to be comfortable with the procurement of your business, they will want to see detailed financial statements. Grow Advisory Group accountants can prepare all necessary reports to ensure peace of mind for the buyer. This service may also involve recasting the statements to remove items unrelated to the ongoing business.
Conclusion
Whether you’re looking to sell or buy a business, there are significant advantages to having an accountant involved in the process.
If you are buying a business, an accountant can provide due diligence on the business to determine the financial state of the business. You will clearly understand the businesses’ operations and precisely what is included in the sale of the business.
If you are selling a business, an accountant can provide an accurate value of your business and help to determine which sale structure will be most tax-efficient for your circumstances. They can also prepare all financial reports to aid with the transaction.
Grow Advisory Group has dedicated accountants specialising in business sales and purchasing on the Gold Coast and Tweed Heads. We can help in all stages of a business sales transaction, including valuations, sale structures, due diligence, and financial reports.
We put your best interests first to ensure a smooth and tax-efficient transaction.
Contact Grow Advisory Group today to get started.
Also read, ‘Should You Hire a Business Accountant – The Pros and Cons & Everything Else You Need to Know‘ for more information.
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Disclaimer: The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from an accountant and/or financial adviser.
