Hi Everyone
I am currently in the process of buying out my business partner for the remaining 50% of our business. I have operated the business over the last 10 years, with my partner being a mostly silent investor.
We have agreed on a sale price.
I'm just looking for some clarity on the adjustments required, if any, at the date of sale.
We normally distribute profits at the end of each quarter, and will set the sale date at the end of a quarter.
If we do a profit distribution at the date of sale, do I adjust for closing stock at the sale date (I pay my business partner 50% of value of stock) as well as liabilities due after the sale such as employee annual leave, gst, paygw, etc (business partner pays me 50% of value of these).
Alternatively, do we not do a profit distribution for the last quarter and I take on all liabilities due after the sale date.
Thanks in advance.
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