Selling a business in Moreton Bay: what to sort out before you sign

Start with the lease

If your business runs from leased premises, the buyer needs the landlord's consent to take over the lease. In Queensland that usually means you give the buyer a disclosure statement, and the buyer gets a Form 12 legal advice certificate (or a waiver) before the assignment can be signed.

Landlords can take weeks to reply. Ask your agent or property manager early what the landlord will want: references, financials, a new guarantee. A lease with little time left, or options that haven't been exercised properly, can put buyers off or reduce the price.

What the contract needs to cover

Most sales use the standard REIQ business sale contract with special conditions added. Check these are clear before you sign:

• The price, and how it's split between goodwill, plant and equipment, and stock
• A list of the equipment included, and anything you're keeping
• How stock is counted and valued at settlement
• Whether the sale is a 'going concern' for GST
• A training period, and how many hours you'll give the buyer
• A restraint: how far and how long you agree not to compete
• Conditions for finance, due diligence and landlord consent, with dates

Staff and their entitlements

Decide early whether the buyer will take on your staff. If they do, the contract should say who pays for leave the staff have already built up. If they don't, you'll need to pay out entitlements and give proper notice. Getting this wrong is a common cause of disputes after settlement.

Clearing debts and finance

The buyer will search the Personal Property Securities Register. Any equipment finance or bank security registered against the business has to be paid out or released at settlement. Get payout figures from your lenders early so there are no surprises on the day.

Local issues we see in Moreton Bay

On the Redcliffe Peninsula many businesses are small, owner-run and seasonal, so buyers often want to see trading figures across a full year, including the quieter months. In the growth areas around North Lakes and Mango Hill, leases in newer centres often include fit-out and relocation clauses the buyer will look at closely.

Selling a business in Moreton Bay: common questions