We can help business owners prepare section 52 for selling their business and also can analyse this form prepared by other accountants as part of due diligence process for buyers.
What is a Section 52?
This statement is required for the sale of business at a price up to $450,000 in Victoria. It is usually completed by the Seller and their Accountant.
There is a standard form provided by Consumer Affairs Victoria.
It is a Due Diligence guide for the buyer and sets out the financial performance of the business over the last two years. It also must provide the financial performance for the current financial year up to the most current quarter.
What information is required in the form?
- The Vendor must sign the this statement.
- It must be provided to the Purchaser prior to signing contract and paying deposit.
- Must include trading results for previous two accounting periods.
- Also current accounting period YTD.
- The Vendors Accountant must sign.
- The Purchaser must acknowledge receipt of statement.
Warning to the Vendor
If this Statement is incomplete or inaccurate, the purchaser may avoid the contract provided they do so within three months of signing the contract and have not already taken possession of the business. If a purchaser avoids a contract on these grounds, the vendor must repay any money paid by the purchaser under the contract. A vendor who fails to give a purchaser or their representative this Statement or gives a Statement that is incomplete, is liable for a fine of up to 10 penalty units.
Notice to the Purchaser
The purchaser may avoid the contract if information in this statement is inaccurate or incomplete and is entitled to a full refund of any moneys they have paid under the contract
If you want section 52 Form 2 to be prepared accurately, please feel free to contact our business accountants.