9 Extra Costs to Consider when Buying or Selling a Business

1 Stamp Duty.Payable on Goodwill and  Plant. From 1.9% to 5.15%(Sliding Scale)

                      No stamp duty is due on Motor Vehicles or Stock.

                      Stamp duty also  payable on Finance Agreements eg,Loans,Hire PurchaseAgreements,

                       and Financial Leases.

 2 Adjustments to Rents,Rates,Land Taxes etc (Usually Prepaid by the Vendor)

                      Buyer will compensate the Vendor for any unused portion of the above.

3 Settlement Agents Fees;

                      These are paid by both Seller and Buyer.Normally on sliding scale.

                      For example based on sale price of $100,000,Seller will pay $960 and Buyer $1440.

                      Allow extra for incidentals.

4 Stock Taking Fees:

                      Independent stocktaker charges normally split 50% each to both parties.

                      Charges will  vary from minimum of $1500 up to 2.5% of the  cost value of the Stock.

5 Lease Negotiation Fees

                      Charged by Managing Agents for arranging new or assigned leases

                      Charges vary from 8.5% of annual rentals upwards.

6 Legal Costs; eg Settlement via Solicitors

                      Usually higher than Settlement Agents Fees mentioned above.

                      Other costs include preparing new leases $500-$1000 or lease assignments $500

7 Loan Application Fees eg Borrowing from Financial Institutions

                     For valuations,legal costs,stamp duties etc. Buyers should allow $1000-$2000

8 Bonds-For Electricity Connection etc Allow 2 x months electricity charges

9 Professional Service Fees- Accountants.Lawyers,Advisors etc .Allow up to $2000


                             Nick Benwell ACA  M 815 005   This email address is being protected from spambots. You need JavaScript enabled to view it.