The Australian Government has released new videos on YouTube to guide business owners who are thinking of selling or closing their business.
The videos, which can be found on the Australian Taxation Office’s (ATO) YouTube channel, explores six steps on the journey of selling or closing a small business. The six steps are: investigating, getting ready, finding a buyer, preparing a contract, preparing for settlement and finalising the sale after the closure. In all of the videos, representatives from major government bodies are present–Rosanne Bell, Senior Exective Leader at ASIC, Kelly Canavan, Executive Director at the ATO, Lynda McAlary-Smith, Executive Director at the Fair Work Ombudsman and Doron Ben-Meir, Director at the Department of Industry & Science.
The investigate video explores the reasons for selling or closing a business such as a business not making enough money, difficulty complying with government regulations and retirement. In this video, the representatives recommend having clarity on the reason why the business is being sold or closed, chatting to professionals such as solicitors or business brokers and having the business valued.
The getting ready video explains how to get ready for the sale or closure of a business, in particular the obligations that business owners have to employees when selling or closing. These obligations include knowing which employees are being let go and keeping employee records up to date.
The finding a buyer video explores how and where to find a buyer, for example through a business broker, word of mouth or even through competitors, as well as restrictions and requirements on who can be a buyer. The representatives recommend that business owners check with their professional body or state or territory body in regards to restrictions or requirements on finding a buyer.
The contract preparation video explores what needs to be in the contract, especially if a business owner is selling. The representatives explain what needs to be in the contract, which can include: assets sold, employee entitlements, liabilities and restrictions on trading.
The settlement preparation video explains what information, documents and obligations need to be provided and prepared for settlement. This can include providing the business name transfer number and ASIC corporate key to a new owner, organising employee payments and transferring leases, licenses, utilities and insurance to a new owner.
The finalise sale after closure video explains the obligations of business owners when finalising the sale of a business after closure, specifically obligations revolving around the business name, a dissolving partnership and tax and activity statements.
There is also a seventh video which covers common questions that business owners ask ASIC, the ATO, the Fair Work Ombudsman and the Department of Industry and Science.
More information on selling or closing a business can be found here.