Selling your company is different from selling your business? Its like selling your house compared with selling your contents! Here are some of the key practical differences:
- The sale of a company requires compliance with ASIC requirements
The sale of a company is generally more complex than a sale of business as there are a number of ASIC requirements that need to be complied with in the sale. Here is the general process of selling a company:
- The parties enter into a Share Sale Agreement;
- Seller holds a company meeting, preparing minutes and a company resolution to allow for the sale of the shares and change of board where relevant;
- Seller completes a Share Transfer Form and relevant ASIC forms for a change of shareholders and directors – or alternatively, appoints another party (for example, their lawyer) as an agent to manage these forms;
- Certain requirements pre-completion may need to be addressed such as change of control restrictions in contracts, finance approval; and
- At completion the shares are transferred.
The buyer has now just purchased the whole company including all its assets and liabilities (i.e. the house and all its contents!).
- The sale of a business
The sale of a business involves a Sale of Business Agreement, transfer of business name, transfer of registration of premises, transfer of assets and relevant contracts (including leases for which landlord consent is generally required prior to the sale).
Its like buying all the contents in the house without actually buying the house.
I have assisted many clients in their sale of their business and companies, from start to finish. Did you know that I can also act as your company secretary or ASIC agent? If you need advice regarding your sale or purchase of a business or company, give me a call on 1300 033 934 or email me at for a no obligation chat.