Thinking About Selling Your Family Business? Why the Highest Offer May Not Be the Best One
After twenty or thirty years building a business, a large offer can look like the finish line. It is often only the beginning of the decisions that matter.
Written by: Melissa Cunliffe (CA)
Family Business Sale: What to Consider Beyond the Offer
What has changed?
In an update on 15 October, the ACCC discussed the mandatory merger-control regime that commenced in January 2026 and scrutiny of acquisitions in concentrated industries.
Not every SME sale must be notified, but some acquisitions can require regulatory approval. Whether you receive your sale proceeds — and what you retain after tax — also depends on the agreement.
Why should you care?
Imagine two offers for a business.
Buyer A offers $1.4 million, with $1 million at settlement and $400,000 conditional on future profit.
Buyer B offers $1.25 million paid in full at settlement.
Buyer A’s headline price is higher; it may not be the safer or more valuable arrangement once conditions, risk and tax are considered. Other issues include working-capital adjustments, warranties, employee entitlements, lease arrangements and whether you must keep working.
What we are seeing in practice
Two siblings selling a regional professional-services business ask, “Will we actually walk away with the amount in the offer?”
Not necessarily.
First establish the sale structure — shares or assets — expected transaction costs, debt repayments, whether small-business CGT concessions may apply, and the timing of payments.
What can you do now?
Ask for a clear written breakdown of cash at settlement, deferred payments and earn-out conditions.
Review guarantees, leases, employee obligations, adjustments and warranties.
Model tax and CGT concessions before signing a binding contract.
Check financing and competition approval conditions with suitable legal advisers.
Something to think about
Would you prefer the highest possible headline price, or the best risk-adjusted result for your family and your future?
At 4P’s Future Accounting, we help family businesses understand the numbers, protect what they have built and plan for what comes next. The right answer depends on your circumstances, so obtain specific advice before acting.
Considering selling your family business? Contact 4P's Future Accounting to discuss the financial implications, tax considerations and planning involved in preparing for a sale.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
