', 'auto'); ga('send', 'pageview');
30Mar

Buying or Selling A Business: Expectations of a Simple Transaction? - Peter Vickers Business Group

selling your business, buying or selling a business advice | 30 Mar 2016 |

In the last few months we have assisted a number of clients to both buy or sell businesses including professional practices. These should be simple transactions but in nearly every case they have turned into an epic saga. In any transaction there are usually six parties. The purchaser and the vendor and each will have their accountant and solicitor. One of the parties, being us is not a problem but any of the other 5 including our client can cause serious issues and delays. Nowadays tax impinges on any transaction and thus the accountants try to get the best tax outcome for their clients. The problem is that a tax benefit for one party tends to be a tax liability for the other. Another issue is that the lawyers want to disclaim any liability for tax consequences and state that they are not tax experts and the client has to get their own tax advice. The accountants then state that they are not lawyers and are prohibited from giving legal advice under the Legal Profession Acts. So how does a clause get written about GST in a contract???

Especially in the professions there is usually a transition period of a few years and thus further conflicts arise in the structure that will apply in this transition period. More issues arise, in  current times, when google will provide you with lots of information about buying and selling businesses and the structures that can be used. The Taxation Office is also battling to keep up to date with the structures that businesses wish to use. It regularly issues interpretations and rulings which invariably change and thus confuse clients and advisors.

A further issue arises if the purchaser needs to borrow money for the purchase. You then have another party plus its lawyers, valuers and credit analysts involved.

Our advice to clients is to be patient, expect the transaction to go for months and be prepared for one of the parties to cause unnecessary issues. The good news is that we have the expertise to assist our client through this minefield.

Buying-a-Business11

Categories

SUBSCRIBE


Join our newsletter subscription

SYDNEY


Suite 2/345 Pacific Highway,
Lindfield, NSW 2070

T: 61 2 9496 2300
services@pva.com.au


Peter Vickers Insurance Brokers

Suite 2/345 Pacific Highway
Lindfield NSW 2070
T: 1300 784 011
enquiries@pvib.com.au

WINDSOR


Suite 3, 31 Brabyn Street
Windsor, NSW 2756
T: 61 2 4577 4455
windsoroffice@pva.com.au


Follow us on Social Media @pvbglindfield   

© Copyright 2021 VICKERS BUSINESS GROUP Pty Ltd | Our Privacy Policy

Follow us on Social Media @pvbglindfield    


Chartered Accountants:  Liability Limited by a Scheme under the Professional Standards Legislation - AFSL 229302  Peter Vickers & Associates Pty Ltd ACN 003466813 | Peter Vickers Insurance Brokers Pty Ltd AFSL 229302 ACL 229302 ACN 074 294 081
Peter Vickers Insurance Brokers is part of the Steadfast broker network.