This webinar explores the legal and practical risks associated with the sale or transfer of a business, whether through a commercial transaction, relationship property settlement, or estate administration. It focuses on the key issues that can affect business value and the implications for practitioners involved in structuring or reviewing these transactions.

In this seminar, the presenters will examine common risk areas, including reliance on key customers or suppliers, intellectual property ownership, lease arrangements, and financing structures - particularly current accounts owed to owners. The session also addresses tax-related pitfalls such as the continuity of tax losses and imputation credits, and the potential for liability arising from historical tax matters.

While valuation theory is not covered in detail, supporting materials provide a brief overview to support contextual understanding. The session concludes with a discussion on how a purchaser might recover their investment, reinforcing the importance of identifying and managing value-related risks throughout the transaction process.

Learning Outcomes

Learning Outcomes

• Identify areas of key reliance within a business that may affect value.
• Understand the distinction between the business and its financing, including current accounts, retained earnings, and owner withdrawals.
• Gain insight into the significance of imputation credits, carried-forward losses, and the thresholds at which they are lost.
• Recognise how business value can be manipulated through: profit and loss items, balance sheet entries, discount rates.
• Strengthen their ability to advise shareholders on exits, including interpreting financial statements and ensuring entitlements are protected.
• Understand the legal and financial considerations for new shareholders entering a business.
• Deepen their understanding of goodwill and its implications in business transactions.
• Improve their ability to assess discrepancies between book value and market value of assets.

Who Should Attend?

Lawyers or legal executives involved in business restructures, sales, or the sale of an interest in a business.

Presenters

Shane Hussey, Director and Principal, Hussey & Co. Chartered Accountants
Sian Heppleston, Analyst, Hussey & Co. Chartered Accountants