Asset Business Sales
(Mergers, Acquisitions and Disposals)
The accounting practice offers to innovative SME’s it’s developed professional expertise in the technical field of asset disposals, mergers and acquisitions as well as management buy-out/ buy-in proposals.
We offer a comprehensive process in packaging up a business ready for sale which includes the following professional services:
Appointing appropriate taxation, legal and financial advisers;
Reviewing all material legal and accounting matters;
Providing an indicative valuation of the business for sale;
Preparation of a binding sale document;
Interim exit options to leave the business on agreed terms with the proposed purchaser.
We can also assist in the identification and targeting of suitably screened potential purchasers of your business. This process of maximising the selling price of your business involves not only selecting the best available appropriate potential purchasers for your business, but also requires putting in place the appropriate documentation for the sale, such as confidentiality agreements binding on all parties concerned.
This sale process for a business represents probably the most important event in the proprietors’ business life, and it is out mission to maximise their exit strategy with attaining the ultimate tax effective capital gain received by the equity owners for the disposal of their private business interests.
We offer a range of specialist strategic advisory services to SME owners to exit their businesses so as to maximise a realistic capital premium as well as their optimum favourable terms and conditions.
SME owners will only ever have one opportunity to realise the maximum value of what is often a lifetime’s work and commitment from starting their business venture.
The practice has developed long term relationships with its SME clients forming a key component of their growth strategies.
The principal has significant experience in numerous structured finance transactions on behalf of major financial institutions, banks and wealthy private investors, covering a broad range of innovative industries, including advanced manufacturing, agribusiness, information communications technology and also the mining technology services sector.
The practice also offers professional services ensuring that tax effective business structures are in place for the cost effective acquisition and disposal of assets on behalf of its clients. Appropriate forward tax planning prior to the sale of your business; will ensure that you and your family will receive the maximum after-tax return that you are entitled to.
Again, we can assist you in this regard, particularly in accessing the Small Business Capital Gains Tax Concession (CGT) entitlements for business being soled with net assets of up to $5 million.
There are four main small business CGT Concessions available:
Small business 15-year exemption
If your business has owned an asset for 15 years and you are aged 55 years or over and are retiring or if you are permanently incapacitated, you won’t have an assessable capital gain when you sell the asset.
Small business 50% active asset reduction
You can reduce the capital gain on a business (active) asset by 50%
Small business retirement exemption
A capital gain from the sale of a business asset will be exempt up to a lifetime limit of $500,000. If you are under 55 years of age. The exempt amount must be paid into a complying superannuation fund or a retirement savings account to obtain the exemption.
Small business roll-over
If you sell a small business asset, you can defer your capital gain until a later year. This means you don’t include the gain in your income until a change in circumstances causes a CGT event to happen that crystallises the gain – for example you don’t acquire a replacement asset within the required period or you later sell that replacement asset or stop using it in your business. When a CGT event crystallises the gain you have previously deferred, all or part of the gain that you deferred becomes assessable.
Our practice has previously advised clients on how to access the CGT provisions for small business, upon the selling of their companies.