1. Transferring a Business or Buying/Selling a Business

There may come a time in your business when you may decide to sell or it needs to be handed down to your son as a successor, as an example. Either way, you will need to prepare well for the sale or the transfer of the business.


2. Here are some tips to ease the process:

  1. Get the financials in order. Prepare the Annual Financial Statements, update the Management Accounts, and prepare a list of all creditors (people that you owe money). You may want to have the business audited by a Professional. The Financial Statements will provide some assurance that the business is a going concern.
  2. Document all the business assets and its value.
  3. Document all the stock in the business.
  4. Ensure that all Bank Statements are available.
  5. Document all your online properties too. For example, you may have a website, Instagram account, Facebook Page, etc.
  6. Obtain all contracts (rental or lease agreements) with the latest contact details.
  7. Ensure that the business is compliant to all the regulations. For example, you may want to ensure that the Taxes are up to date, Annual Returns to CIPC and SARS are in order, UIF and Compensation Fund dues are fully paid, liquor license for example if you own a restaurant, etc.
  8. Ensure that all the employment contracts are place.
  9. Update the Business Plan.
  10. Prepare a list of suppliers and their contact details.
  11. Prepare a list of all customers and their contact details.
  12. Draft a Sales Agreement or Transfer Agreement.

Before you transfer or sell the business, it is best to consult with your Accountant or a business advisor.

Your business records will then need to be updated at CIPC. For example, the Directors may change on your business if you have a private company.