andy & jayne

We are just in the middle of selling our business and we had a meeting with the buyers & their accountant on Monday. They are trying to knock the price down (BASTARDS! MORE CHANCE OF BEING SHAT ON BY A WOODEN ROCKING HORSE!!) Their idea to knock the price down was for us not to pay our suppliers, the tax man or the VAT and knock that amount off of the asking price :scared:

The people buying used to be friends, not any more!! Now its business. Either pay up or f**k off!

Serious question though - Because of all this dawdling we are now going to have to fly out Australia and validate the visas (we need to be there by 16th March, 2006!) Can we just fly in and get passports stamped then fly home the next day? I know we will be knackered but we cannot close the business for more than a week. Do we need to be in Oz for any specific time to validate??

HAPPY NEW YEAR!

Jayne

debbiemc

sorry to hear that jayne, some people are just soooooo greedy arent they?

as for validating, i believe i'm right in saying yes, you can have them stamped and leave.

good luck and i hope you get sorted soon

debbie

AnitaB

Hi Jayne

On their suggestion of not paying suppliers, VAT and the tax man, I would recommend reporting the accountant to his professional body assuming he was in the meeting as this is completely inappropriate and he could be seriously reprimanded (may be worth trying to bribe them instead!).
It would also still leave you liable for the debt and in the potential event of returning to the UK could cause significant problems for you.

On you question of validating, just getting the passport stamped on entry is sufficient and would enable you to return straight home, however with the stress you are having, I would recommend at least a few days just to relax before coming back.

Hope you get things sorted.

AnitaB

Centurion

Be realistic. Reporting the buyers accountants on hearsay evidence isnt exactly a smart move is it. Not exactly much chance of selling the business then is there ?

We sold our business and it was horrible, traumatic and a pain on mostly every level. Keep focused. The sale of the business is the goal and once its gone then you can simply reap the benefit. Simply roll with the punches until then and dont get stressed - its not worth it.

kevinl

Is the accountant chartered or even a real accountant?

I jokingly said to our accountant about knocking the VAT etc and he gave me a whole lecture about his ethical position etc.

Also if you fraudulently conspire to not pay you are then as a Director personally responsible anyway.

These people sound like complete chancers to me who really haven't a clue.

Good luck on finding a proper buyer.

Kevin

AnitaB

The prospective buyers sound like time wasters and should be given a taste of their own medicine!
Hubby is accountant and would never be involved in something of this nature.

I know they have been trying to sell their business for ages and people like that just want to take advantage!

AnitaB

NedKelly

I really don't see what your problem is. In very simple terms the value of your business is it's Assets (Plant, Machinery etc. ), plus debtors (people who owe you money) less the amount owed to your creditors (people who you owe money to) plus any enhancement due to goodwill. If you hold off paying your suppliers then the value of the business goes down as it owes more money.

It's a bit more complicated than that but all things being equal it shouldn't make any difference to you at all. The only problem is you will get a bunch of unhappy suppliers for a while which may be a problem if you/they are continuing to do business.

annqldau

Think may be easier just to find a buyer who really wants your business for the asking price not someone just out to make a quick buck.

kevinl

Spot on.
Assuming you are a company and not a sole trader then the company is a separate entity to you.
So as Ned says any debts and liabilities stay with the company.
As long as the sale is done properly the new owner is liable.

In my case we only had goodwill to sell and not any plant etc, so sold the goodwill and folded the company.

How does your accountant see their idea?

Kevin

Alan Collett

What did your accountant say in reply?

Did they mean that they would assume the liabilities in exchange for them paying less for the business? If so, that might mean you pay less CGT ... on which note have you taken any advice about perhaps mitigating your CGT bill as a result of your move to Australia?

Re validating your visas: yes, what you are suggesting would be fine.

Best regards.

andy & jayne

Thankyou everyone!

These people have said they wanted the business for 18 months and now they have left it to the last minute (pain in the arse!)

Believe me if we had more time we would sell to someone else. We are a restaurant and we do have a lovely Indian man who wants to do a deal. But all the paperwork is done on the other people so it would pay to go with them! We do not really want to have fly out and come home, would rather it be permanent!

Our accountant was not at the meeting and have not told him yet!

And no, the said buyers, just wanted us to knock our debts off the selling amount and would not be settling them themselves making us 'fugitives' if we ever returned!

Believe me, the pet mouse who escaped the other day and who now resides under the floor boards in the flat above the business can go on living there now with my blessing!

Jayne

Alan Collett

Then I tend to concur with posting #5 above ...

Good luck - it must be a stressful time.

Shaun&Dee

Good on you. Don't let these people get away with it,