How to sell your business

We're often asked the best way to sell a business

There are two key components at play in the sale of a business; structuring the transaction and positioning the business to the market. 

selling your businessBoth elements are important and can significantly impact your result.

Structuring the transaction covers things such as pricing the business, the terms and conditions attaching to the sale, key terms in the contract, and ensuring the transaction structure is as tax effective as possible. Much of the structuring is about ensuring the vendors secure the most efficient and effective outcome from the sale. It is about maximising vendor position.

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Measuring productivity

The Pandemic Productivity Gap

A recent article published in the Harvard Business Review by Bain & Co suggests that the pandemic has widened the productivity gap between top performing companies. 

productivityThe article stated, "Some have remained remarkably productive during the Covid-era, capitalising on the latest technology to collaborate effectively and efficiently. Most, however, are less productive now than they were 12 months ago. The key difference between the best and the rest is how successful they were at managing the scarce time, talent, and energy of their workforces before Covid-19."

Atlassian data scientists also crunched the numbers on the intensity and length of work days of software users during the pandemic. The results found that workdays were longer with a general inability to separate work and home life, and workers were working longer hours (predominantly because during lockdowns, there is no set start and end of the workday routine). 

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JobKeeper Payments returned

Why are some businesses returning JobKeeper to the ATO?

Super Retail Group - owner of the Supercheap Auto, Rebel, BCF and Macpac brands - handed back $1.7 million in JobKeeper payments in January after releasing a trading update showing sales growth of 23% to December 2020. 

jobkeeperToyota announced that it will return $18 million in JobKeeper payments after a record fourth quarter. And, Domino's Pizza has also handed back $792,000 of JobKeeper payments.

Toyota, Super Retail Group, and Domino's were not obliged to hand back JobKeeper. Under the rules at the time, the companies qualified to access the payment. However, Toyota CEO Matthew Callachor said, "Like most businesses, Toyota faced an extremely uncertain future when the COVID-19 health crisis developed into an economic crisis …We claimed JobKeeper payments to help support the job security of almost 1,400 Toyota employees around Australia ….In the end, we were very fortunate to weather the storm better than most, so our management and board decided that returning JobKeeper payments was the right thing to do as a responsible corporate citizen."

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Byron Coast 2021 charity walk

Accountants crunch the sand (not just the numbers)

Collins Hume fundraising for the Westpac Rescue Helicopter Service

Collins Hume Byron Coast charity walk teamKey fundraising points

  • It costs about $40 million a year to keep helicopters and crews on call, ready to respond
  • About $12 million of that cost is raised through sponsorships, volunteer, support groups, events and community partnerships
  • The remainder is funded through contracts with NSW Health and NSW Ambulance.

On 22 May, Collins Hume is putting up a team to raise much-needed funds for the Westpac Rescue Helicopter Service.

Every dollar raised contributes to keeping the Rescue Helicopter Service available 24/7, 365 days a year. Each of our team has a personal goal to individually raise $250 per person.

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Allocating professional firm profits for tax purposes

New guidance for the allocation of professional firm profits

Key changes

professional firmsWe outline the implications of the draft ruling by the Australian Tax Office (ATO) in terms of how Professional Firms (Accountants / Solicitors / Engineers, etc.) allocate their profits. This is a change from what has been done in the past and will have consequences for professional firms.

The ATO's risk-based compliance approach requires two qualifying 'gateways' to be passed before applying their risk assessment framework.

The gateways require those with non-commercial arrangements, and those arrangements with high risk features to engage with us before applying the guidance.

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