What are the ways to Exit your Business?

What are the ways to Exit your Business?

After a natural disaster or other significant disruption to your startup/business, you feel like not to re-open your business at all. Maybe your company was already facing difficulty. Perhaps the prospects of rebuilding from scratch, re-opening and adapting to new circumstances feel more than you can handle at that particular time.

Closing or Shutting your business may be a legitimate decision to make. However, you should also be aware that you could risk being fined or facing criminal charges under the Corporations Act if you trade while insolvent.

Exiting your business

There are several ways for exiting your business, including: 

  • selling your business; 
  • passing or take over the business on (e.g. to a family member); 
  • merging the company with another company; and 
  • closing down the business activities and selling off its assets.


Closing or selling 

If you plan to sell, a business broker or business valuation specialist can help you establish the business's value and publicise your sale offer. 

Steps for preparing your business for transfer, sale or merger 

1. Engage a professional/solicitor and get some professional advice. 

2. Ensure your business records are transparent, tidy, complete and available for inspection whenever requested. 

3. Define the strength points of your startup/business and ensure these are well emphasised in negotiations.