Thinking of Selling Your Business? What every business owner should know.

Selling a small business is one of the most significant decisions business owners and stakeholders will ever make — and it’s not a simple financial transaction.

But many business owners are caught off guard by one of the biggest hidden variables in any sale: their employees.

Staff entitlements — including accrued annual leave, long service leave, and redundancy pay — represent a real financial liability that affects the final sale price, regardless of whether the buyer takes on your team or not. Not giving due consideration or understanding the process can lead to last-minute disputes, damaged relationships, or a deal that falls through entirely.

Employment Hero recently interviewed our Commercial Parter Karen Greenidge and Karen breaks down exactly what small business owners need to know before selling up. From the critical 35-day deadline for employment decisions to why clean record-keeping can make or break buyer confidence, it’s essential reading for any business owner planning their exit.

Key takeaways from the article include:

• Why staff obligations are a ‘hidden liability’ that directly affects your sale price
• The 35-day rule buyers must follow — and why it matters to you as the vendor
• How to communicate a sale to staff without derailing the deal
• Why disorganised records can have buyers lowballing your valuation
• The Fair Work record-keeping penalties that can reach up to $93,900 per contravention

Whether your exit is on the horizon or you’re just future-proofing, this article is worth a read. If you need advice to sell your business contact our business sale lawyers today.

👉 Read the full article on Employment Hero:

Legal Expert Shares Secret To Selling A Small Business Well

About The Author - Karen Greenidge

Karen is a Partner in the Corporate and Commercial Law team at PCL Lawyers. She has over 23 years’ experience as a corporate lawyer, providing advice on mergers and acquisitions, sale and purchase...