Exiting your business

If your business has been significantly affected by a crisis event, you should consider the viability of your business. While many businesses reopen and operate successfully after a natural disaster, some do not. Estimates from the United States indicate that up to 40 percent of businesses never reopen following a disaster and of the remaining businesses, 25 percent will close within two years.

Going through the options open to you, it's important to seek guidance and advice from your business advisor, accountant or lawyer.

If you do decide to exit your business there are several other online sources available to you:

Time to exit

There are several ways in which the business owner can exit from their business, including:

  • Selling the business
  • Passing the business on to a family member, partner, employee or other stakeholder
  • Merging the business with another business
  • Closing down the business – sale of assets and cease trading
  • Liquidating – liquidate the business and sell off the assets
  • Forced closure – file for bankruptcy or liquidation

Take the time to assess each option carefully. Before you make a final decision, speak to your business adviser, lawyer or mentor and obtain specific financial and legal advice.

Consequences of continuing a business while insolvent

It's important to understand the risks if you continue a business while it is insolvent. For information on the consequences of insolvent trading speak with your accountant or lawyer or visit the Australian Securities and Investments Commission website External link

Last Updated 24th July 2017