Exiting a Business
There can be many reasons for exiting business, ranging from retirement, health reasons, moving town, and right through to changes in the market or financial reasons (positive or negative). Whether you are considering closing or selling, exiting from business can be challenging, so here is a list of things you need to think about during this process.
Do regular business health checks;
recognise early that you need to exit your business.
Be realistic and as objective as you can be.
Get a clear picture of your business position.
Be decisive, think carefully about what actions to take but don’t procrastinate.
Closing or Selling? Look at the options.
Be honest with yourself, stakeholders including staff, and your family.
Set a clear timeline for actions.
Seek professional advice.
Discuss your situation and intentions with your accountant.
Current financial position
Sale of stock/plant
Discuss your intentions and consequences with your lawyer.
Restraint of trade (especially for sale of business)
Redundancy of workers
If you have staff
Study employment agreements.
Be honest about the situation with staff.
Talk to Department of Labour. (www.dol.govt.nz)
Talk to Work and Income regarding losing staff.
Talk to your business banker.
Discuss situation with Inland Revenue Department regarding procedures. (www.ird.govt.nz)
Contact Suppliers, Customers, Sub Contractors, Utility Companies, ACC etc.
If you are a registered company, contact the Companies Office. (www.companies.govt.nz)
Keep all your business records secure.
Again let me repeat the need for profesional advise and personal support in this process.