MCW Education THE LIFECYCLE OF PRIVATE CLIENTS Business
MCW Education. THE LIFECYCLE OF PRIVATE CLIENTS
Business Sales Mark Woolley, Principal, and Brendan Mc. Grath, Senior Associate Module 3 | Lesson One
The Contract. • The most commonly used contract is the REIQ business sale contract but it is not uncommon for other contracts to be used. • The REIQ contract contains a standard set of conditions which set out the basic rights and obligations of the parties
Before Going to Contract. • • • Selling Entity/Entities Quantifying assets Valuation What is being sold? Normalised accounts
Asset v Share Sale. Asset Sale V Risk Taxation Warranties Contracts Stamp duty Share Sale
Standard Conditions. • • • Carry on Business Lease Assignment/New Lease Stock take? Release of PPSR GST Assignment of Service Contracts/Intellectual Property/Company and Business Names • Employees • Training Period
Special Conditions. • • • Restraint of Trade Earn outs Vendor Finance Release of Guarantees Return of deposits/bonds
Other Considerations • • • Collection of debts Work in Progress Notifying customers/clients Payments to third parties Update ASIC/ATO etc.
Settlement | what to expect? • Payment of commission • Documentation: – – • • Signed leases Franchise agreements Transfer of contracts/agreements PPSR releases Funds exchanged Tax Invoices Keys/Access Run off insurance
Questions? For more information, please contact: Brendan Mc. Grath Senior Associate (07) 3231 0677 bmcgrath@mcw. com. au
- Slides: 10