Discussion in 'Accounting, Tax & Legal' started by scys, 21st Jun, 2008.
If I want to sell my business to 2 of my children, what are some factors that I need to consider?
Some possible factors in no particular order;
On a pragmatic business level
1. stamp duty, ad valorum duty will most likely be payable on the fair market value of the business
2. if the business is held in a company, will you sell the goodwill and keep the company or will you sell the shares in the company
3. capital gains tax - if sold for a gain, can you acces the Small Entity CGT concessions
4. if in a company, do you have any continuing liability issues - eg. PI insurance, directorships
On a more personal level
5. are you're kids up to it
6. do you want to put the stress of running a business on them
7. could they tarnish your reputation
8. if $ involved is your estate in order if one child (for instance one not buying the business) feels that they didn't get a fair distribution
Separate names with a comma.