You’ve built your business with hard work and determination, but, when it comes time to exit, the process can be overwhelming. Questions about valuation, negotiating the sale, minimising tax implications and ensuring a smooth transition may keep you up at night.
At Munro’s, our accountants help guide business owners through every step of selling their business, so you can confidently move on to your next chapter.
From $3,000 (excl. GST)
Tax Planning Before Business Sale ServicesThe rest of this page is dedicated to providing you with an overview of the typical problems and associated solutions with regard to selling a business. These apply whether you are selling a business in Perth, elsewhere in WA or across Australia.
Should you need professional accounting help when selling your business, please let us know by booking a meeting or sending an enquiry.
The Problem
Selling a business isn’t just about finding a buyer; it’s about overcoming several key challenges:
Smooth Transition: The sales process can disrupt day-to-day operations. You need a plan that ensures minimal interruption so that your business continues to thrive during the sale process.
Our Solution:
At Munro’s, we understand that every business is unique. We listen to your challenges and craft a tailored solution that delivers real value. Here’s how we can do it:
Key Outcomes & Benefits
video key points
Presented by: Rama Yudhistira
video transcript
At Munro’s, The Professional Problem Solvers, one of our specialties is assisting Australians with accounting and business improvement associated with selling their business.
Whether you’re planning to sell to an unrelated party or through succession to family members or management, we are here to help.
Our role is to ensure you are well-prepared for the sale, aiming to achieve your financial goals while mitigating taxes. It’s crucial to start preparing several years beforehand. Early preparation can significantly influence the outcome of your sale, which we highlight on our Selling a Business webpage.
Determining a realistic business value is essential. Through profit improvement and strategic growth programmes, you can positively impact your business’s value.
Additionally, proactive tax planning a few years before the sale could dramatically reduce your eventual tax burden.
A comprehensive plan should also address what comes next, including tax-effective retirement planning.
For those considering business succession, particularly to family members, we recommend visiting our Successful Succession Planning page. There we cover what incoming owners should consider, what retiring owners need to do, and how large family groups can preserve and grow wealth while protecting against potential family disputes.
Please explore these pages if you need assistance and take note of the wonderful 5 star reviews that clients have submitted in relation to such professional work we have provided to them. When you’re ready for our help, we’re here ready to assist.
See you soon.
To increase the chance of selling your business within the desired timeframe and at the price you want, you need to get it ready for sale. Generally, the sooner you start getting ready, the better.
Solution
Business sales readiness.
Outcome
An attractive business for prospective buyers.
video key points
Presented by: Carl Hansen
video transcript
To increase the chance of selling your business within your desired timeframe and at the price you want, you need to get it ready for sale.
The sooner you get started, the better.
The following are some of the things you may need to do:
Ideally, begin these preparations three to five years before you intend to sell. This timeframe allows you to make necessary improvements and position your business as an attractive acquisition.
Should you need assistance, we’re here to help. A free Get To Know Each Other meeting is an excellent starting point. You might also find our Selling a Business Diagnostic on our website useful.
We look forward to supporting you in achieving a successful sale.
There isn’t just one way to value a business. Ultimately, what you want as the seller is a business valuation that is realistically achievable and prepared in such a way that will effectively help the buyer agree to pay it.
Solution
Realistic business valuation.
Outcome
Increased chance of selling the business at a fair price.
video key points
Presented by: Saul Segal
video transcript
Transcript available on the Business Valuation page.
There may be very valuable tax concessions available if you satisfy certain criteria. This includes the possibility of an extra 50% CGT discount plus a part or full tax exemption. Forward planning is advised, given that things may need adjusting the year, or several years, before selling.
Solution
Forward tax planning.
Outcome
Bare minimum tax.
video key points
Presented by: Rama Yudhistira
video transcript
Transcript available on the Tax Planning Before Selling a Business page.
As you approach selling your business and possibly coming into a large cash lump sum, you’ll need to consider how to set this up in a tax-effective and financially prudent manner.
Solution
Retirement tax planning.
Outcome
Tax-effective retirement.
video key points
Presented by: Rama Yudhistira
video transcript
Planning for retirement is an important task that requires careful consideration and preparation.
A part of that planning, and eventual implementation, should be a focus on making things tax effective.
When you sell your business, not only do you want to minimise taxes during sale, you want to minimse taxes over the long-term.
For instance, if the sale results in a large cash lump sum, you want the income you generate from that over the forthcoming years to be taxed as least as possible.
A common strategy to mitigate taxes in retirement is to build up wealth in your superannuation account. This is because the tax rate on superannuation earnings may be nil or at a rate lower than your ordinary tax rate.
In the years leading up to retirement, your plan may include maximising both your concessional and non-concessional contribution limits. Around the time of sale of your business, if eligible, your plan may also include maximising special concessional limits. Later you might also utilise the downsizer contribution limit.
Ultimately, tax professionals such as ourselves can work with you in the lead up to, and during retirement, to effectively save you tax.
At Munro’s, we don’t provide investment advice, but rather work alongside you and your financial advisor to help with an holistic retirement plan that both achieves your income and wealth objectives, together with your tax objectives.
Where clients don’t yet have a financial advisor, we are able to introduce them to financial advisors we trust to do the right thing.
We also proudly assisted our clients with tax effective estate planning, which can include the outputs of:
During such conversations we also assist clients with considering whether any of their assets should be transferred to the next generation while they are still alive.
There are a few reasons why you might want to consider doing this, including:
While we leave the legal and financial advice to the experts, we will always be there as a sounding board – always truly looking out for your best interests as your Trusted Advisor.
If you would like an advisor that truly cares, we would love to hear from you and begin an incredible journey together.
First Session is FREE (incl. GST)
Upskilling Event for Business LeadersWe first met Mike Beer 25 years ago, when he was assigned to our account by his employer at the time. When Mike moved to Munro’s, we decided to transfer our business to follow him as we were so impressed with both his professionalism and his character.
We have never regretted our decision to keep our business with Munro’s and Mike, who we think of as a good friend first and a total professional second for the excellent service he and his company have provided.
Congratulations Munro’s on your anniversary!
We have been clients of Munro’s (and Donald F Munro & Assoc. before that) for more than 50 years and have always found them to be right on point with their advice and work. Nothing is too much trouble to research and the responses always given in easy-to-understand language. We love that the K.I.S.S principle is used (keep-it-simple-stupid!) We can’t thank Simon and Carl enough for the great service that they provide. I have also, in community roles, worked with Barry Virgo and Ian Arblaster over the years on Co-operative business and their knowledge was second to none.
Thank you and congratulations Munro’s on 50 years + in business.
The team is very responsive to emails and their communication is good. I was dealing with Brian and Saul.
Great first experience at Monro’s! Took on the service expecting a sizable tax bill and ended up with a rebait, also learned about tax laws. Will defiantly be back next year.
David and I have been loyal clients of Munros for many years—I think since we were married in 1962. David made all the decisions in those early years. I became a more active partner as we worked with Ted Wilhelm and Ian Arblaster until their retirement. We then worked with Christine Prasetia for our financial, accounting, taxation and our wills until David’s death in May, 2017. Christine has patiently guided me through taking up the reins of our business venture. She is very efficient and totally reliable in all our dealings. I feel fortunate to have Christine as my accountant and business advisor. Thanking you, Val McAlpine
MUNROS what a great team:
Munros have supported 3 generations of the O’Halloran family from Kojonup over the past 50 years. Starting with Donald Munro when he was Wesfarmers client Accountant.
We are very grateful for their ongoing support in all accounting matters. Simon, Christine and their team are always willing to help whenever we need it.
Congratulations on your 50-year celebration. All the best for the future.
Have been using Munro’s for over 30 years and have been completely satisfied with the friendliness and expert knowledge they provide. I would fully recommend anybody needing an accounting firm to use Munro’s. Well done Simon and the team.
Mike assisted with our farm succession planning. Thanks to Mike’s in depth knowledge on this subject, this process has been smooth and amicable. We highly recommend Mike and his team for family business succession.
Great Firm. Have been dealing with Christine for a few years and she is always there for advice and willing to help. Highly recommend.
Thank you to Mike and Munro’s for your expertise, professionalism and patience.
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