Selling your business is a complex and time consuming process and for the unprepared it
can be a daunting experience
Your business broker’s role is to professionally market your business and achieve an optimum sale value while you continue to run the business and enhance its value. We aim to keep distractions to a minimum. However, you must still be prepared to invest time and effort in the sales process, because experience has taught us:
When selling a business, the more prepared you are, the quicker, easier and better the sale will be!
Representations
As the Seller you should be very careful what statements and representations are made in
respect of the business. Ideally none would be made and the Buyer would make their own
evaluations and investigations. However, you will need to make some representations, in
particular, those regarding the financial performance of the business.
You should always ensure that any representations are:
- Accurate, and
- Can be proved or legitimately supported
Warranties by Seller
Clause 8 (i) of the Standard Conditions of Sale, “Statements and Warranties”, stipulates -
“The trading figures and other financial data relating to the business, particulars of
which are set out in any schedule, annexure or appendix to this Contract are true
and correct in every particular.”
If the Buyer finds that the information is false or incorrect the Seller may be in breach of
the Contract, allowing the Buyer to terminate the Contract and sue the Seller for damages.
Preparation is the key!
Disclaimer: We accept no responsibility and disclaim all liability in respect of any errors, omission, inaccuracies or misstatements contained in this document. Prospective sellers should make their own enquiries to verify information contained in this document and should consider obtaining professional advice in relation to the sale of their business.