Q&A
Find out how we can help you and the Geelong Area
Questions & Answers
Q:
What is the criteria?
A:
Needs to have staff, minimum x3, and be in the Geelong region.
Though we will look at others under our Quick Sale process.
Q:
What if my business isn't currently profitable?
A:
We understand that some businesses are doing it very tough. We will look at them but the price paid will always be based on its current state, not a previous or hopeful future state, we buy as-is.
I'm already in administration can I still apply?
A:
No, you cannot, you are no longer in control of the business the administrators are.
Is it easier to liquidate or sell to you?
A:
It is easier to sell to us. In many cases, owners are so fed up with not being able to sell that they just close down. This is sad for the owner, the staff, and the community. Before you decide to do that, please contact us and see if we can come to some arrangement that works for us both.
I have very large debts I cannot pay, would you still be interested in buying my business?
A:
Yes, in some cases we may be able to sort the issues out and keep the business alive. The key to this is speed and full information ready from the start. So before you contact us get together all the details of what you owe, including terms, etc... and your past 5 years of financials and let's have a chat.
Q:
What if Geelong Strong sells the business?
A:
If you are on a deferred payment plan as you wanted a higher price for your business, prior to putting the business up for sale, we will ask you if you would like to be paid out or continue the agreement. Depending on what you want we will negotiate that into the sales contract.
Q:
What happens if I die?
A:
Your contract and future payments will be transferred to your next of kin or who you specify in your Will. This way your family will continue to receive your income.
Q:
What if I want to spread this income among family members to reduce my tax?
A:
This is a smart move to get some tax savings. When we set up the agreement you can specify who and how much each person gets. If you want to change this during the course of the contract you can, but you will need to pay any fees incurred for the change. We suggest talking with your tax accountant and lawyer about what is best for your situation.
Q:
Will I have any say over the business after settlement?
A:
No. Geelong Strong will own the business outright. But we will require your specialised knowledge, advice, contacts, and experience. We generally request that you stay on as an advisor if you are willing and able. In the end, it is up to the new owners to make all decisions regarding the company.
Q:
I have family members working in the business and long-term loyal staff that I want them to keep their jobs. Can you guarantee they stay?
A:
No. Though it is not our intention to get rid of any staff, it is actually our intention to grow the staff levels as the company grows. It is to our benefit and cost-saving if we can retain all current staff as they already have a working knowledge of the business. In the case that their role is no longer suited or made redundant due to technology or other changes, we will always look to put them into a new position within the company. Our priority is to keep the business strong throughout this unstable climate and grow. It’s through doing this that we can achieve our goal of creating employment in the Geelong region.
Q:
Can I take out a lump sum in the future if I need or want to?
A:
Yes. Terms will apply. You can do this after the first two years. Depending on the amount required, cash position, and borrowing capacity of the business at the time. We will always try to accommodate you in receiving any funds you require. Please note any funds taken earlier will no longer earn the 6% interest.
Q:
Will I be an employee of Geelong Strong or the business, or will I have to pay my own taxes?
A:
You will have to pay your own taxes, you will not be covered as an employee or contractor by the business, so you will not come under the insurances, supers, or any other benefits that the company or Geelong Strong have. This also means that you may be able to claim your expenses like a car, home office, etc… which will reduce your tax and put more money in your pocket. Please speak with your tax accountant about this.
Q:
How will I know where I am in regards to payments, interest, etc…
A:
You will be set up with an online account that gives you access to exactly where you are in real-time. The platform includes our agreement, payment schedule, it will track every transaction, you will have an app to view it on your phone, you will also be able to download it as a PDF, securely kept on the cloud so it is never lost, using industry standards of privacy, security, and third party risk, compliant it undergoes regular third-party independent audits with controls and processes in place to safeguard the data.
Q:
I already have a broker; can I still apply?
A:
No. Not until you have either resigned from the contract or wait until it is void or negotiated some deal with your broker. If you do not you may be liable to pay for the commission owed. We suggest you speak with your broker or lawyer.
Q:
How do you value a business?
A:
It can be different depending on the industry, issues in the business, and many other factors.
Most of the time, we use the common x1 to x2 profit, plus assets, minus liabilities.
I have a car that's in the business, can I keep it?
A:
Yes, but as it is an asset of the business it would be classified as a part of your settlement, thus you will be liable for any transfer fees involved, as with any other assets that you would like to keep at the sale. All these factors can be negotiated.