Are you thinking of selling your business?
Did you know most, if not all of the assets
must be provided to the buyer free of all
claims and charges. But how do you find out
what claims and charges might exist over your
assets?
I’m John Gallagher from Argon Law and I
often find clients are surprised at the extent
of charges that do find their way onto the
Personal Property Securities Register, or
PPSR. The PPSR keeps a record of all claims
and charges placed over your assets
It is therefore never too soon for a business
owner, thinking of selling, to conduct searches
of the PPSR to check what security interests
have been registered over his or her business.
If a search of the register is not done until
a contract of sale is signed, or worse still,
you wait until the buyer sends you a copy
of its search, you may find its very difficult
to arrange for all of the relevant charges
to be dealt with in time for settlement. This
can create difficulties that stall the sale,
or even result in termination of
the contract.
It takes time to approach financiers and make arrangements to obtain releases or undertakings
that will satisfy the buyer. This may involve the financier attending its settlement to collect a cheque in exchange
for its release. Although its an online database, conducting a search of your business on the PPSR is not
always a straightforward process.
The register may need to be searched in a
number of different ways to identify all charges
relevant to your business.
If you have any questions about searching
the register or any other aspect of selling
a business, then please give Argon Law a call.
And if you have found this video useful then
click here to subscribe to our video blog
and have a look at our website.
