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Goodwill Hunting/Legal Tips
| Goodwill Hunting - Legal Tips When Selling |
Welcome to Goodwill Hunting! It is here that Australian Newsagency Sales aim to assist you with the sale of your Newsagency by sharing regular tips and advice from professionals within the Newsagency industry.
Legal Tips - Selling your Newsagency
Experience has shown that a well-prepared Vendor will always achieve a smoother and quicker sale. When considering the sale of your Newsagency, you should consider the following matters:
Up-to-date Financial Statements
This is perhaps the main cause of buyer frustration. Purchasers can cool off quickly if the Vendor's tax figures are not current and they cannot give these to their Financier. Delays can be minimised if you anticipate this vital step.
Lease and Landlord Disclosure Statement
These documents should be current, with copies available to view. If the Lease is close to expiry, be proactive and negotiate a new longer Lease with an option to renew.
Current Inventory List
This essential list should be available for purchasers to view and should show all plant, equipment, fittings and fixtures included in the sale. Items that are remaining and which belong to third parties should be listed separately (e.g drink fridge, ice cream freezer, ATM etc).
Publisher / Supplier Agreements
These agreements should be current and available so that you can establish what rights you are actually selling, as well as a list of current Sub-Agents and Sellers.
Equipment Hire
If you have any equipment under lease / rental / commercial hire purchase, have copies of these handy including details of current monthly payments. Think about whether you should pay these out or transfer them to new owner.
Registered Business Name
If you trade under a business name, check to see if it should be registered.
Employee Entitlements
Make sure you are clear on whether employees have potential long service leave or other entitlements, as you may need to pay these out at settlement.
For further advice on these topics, please contact Philip J. Luca Solicitor, of Hornsby on 9477 5888. Philip has been a Solicitor since 1978 and has specialised in Newsagencies since 1989.
There is a surplus of serious buyers in the market right now, so if you are planning to sell your newsagency through qualified industry specialists, call the ANS team now on (02) 8425 9600 or email us at info@newsales.com.au.
Yours sincerely
The ANS Team
www.newsales.com.au
Australian Newsagency Sales (ANS) - Where you only pay for results
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| Goodwil Hunting - Accountant's Selling Tips |
IMPORTANT CONSIDERATIONS WHEN SELLING A NEWSAGENCY
There are always many factors to consider when preparing to sell your newsagency. The most obvious considerations will be financial and taking the necessary steps to achieve a smooth transaction resulting in an optimal sale result.
To ensure you make the most of your sale, we recommend that you seek advice from an industry professional with experience in preparing small businesses, particularly newsagencies, for sale.
Below, Grant Arnold of Pinker Arnold & McLoughlin Charted Accountants has provided a list of items for consideration when preparing to sell your newsagency business.
1. Obtain an accurate assessment of your business prior to listing for sale because not all newsagencies are the same.
2. Research the current market and goodwill value in the industry.
3. Be prepared to spend 1 ¡V 2 hours with an accountant who will review your business for a prospective purchaser. This process is called a due diligence and they will require the following information which is linked to bank finance and is critical for a prospective purchaser to obtain finance from a recognised banking institution:
„Ï Financial Statements for the years ended 30 June, 2005 to 2007.
„Ï Cash payments summary for the year ended 30 June, 2007
„Ï Wages records (including wages books and copy of employees group certificates) for the year ended 30 June, 2006 & 2007
„Ï Soft Gambling Summaries as supplied by State Lotteries for the years ended
30 June 2004 to 2007.
„Ï Suppliers Statements. These should be filed together either by date or supplier for the year ended 30 June 2007.
„Ï Current fixed asset register prepared.
„Ï List items belonging to third parties which are to remain, such as drink fridge¡¦s.
„Ï Copy of Shop Lease
„Ï Monthly rental invoices for year ended 30 June 2007
„Ï Monthly Takings Report from the Point of Sale for the year ended 30 June, 2007 showing sales in the different categories
„Ï MYOB, Quicken or Cashflow Manager files if computerised, if not manual cashbook, cheque butts and bank statements for the year ended 30 June, 2007.
„Ï Sub Agency books and records
„Ï Newsagency Territory (this will be attached to the Fairfax & Nationwide contract that was originally signed)
„Ï Copy of the card rebates details and correspondence
4. Make sure you are aware of all your employees¡¦ entitlements, such as long service leave, as you may need to pay these out at settlement.
5. Be able to demonstrate potential growth opportunities and that the lease in place has a sufficient time frame to enable a prospective purchaser to obtain finance. It is important to note that no financial institution will fund a sale transaction if you do not have a solid lease in place.
As you can see, there are many things to consider and be advised upon when making a decision to sell your newsagency.
This article has been provided by Pinker Arnold and McLoughlin and as qualified Chartered Accountants and industry professionals PA&M can assist you with all of the above considerations and provide you with advice based on your individual circumstances. Please contact Grant Arnold at Pinker Arnold & McLoughlin on (02) 9585 1255 or grant@pam.com.au
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