Is your intellectual property boosting your business valuation, or giving buyers an excuse to cut your sale price?

When selling a business, buyers and private equity funds look past balance sheets to examine proprietary assets. Unclear IP ownership is one of the most common reasons deals stall, warranties expand, and purchase prices get chipped away during legal due diligence.

Before taking your business to market, review these four essentials:

·         Contractor IP Assignments: Under Australian law, contractors own the work they create unless transferred via an express written deed of assignment.

·         Moral Rights Consents: Moral rights cannot generally be assigned; buyers may require written consents from authors, software coders, and designers.

·         Registered Trade Marks: Business name and domain registrations offer no statutory monopoly. Registered trade marks in the correct registration classes, turn brand reputation into an enforceable asset.

·         Change of Control Clauses: In share sales, check whether key commercial software and partner licences require prior counterparty consent.

Clean legal title removes buyer leverage, speeds up settlement, and protects your final payout.

Connect with our commercial business law team to arrange a confidential pre-sale IP audit for your business  to protect your value and get you sale ready.

Embarking on the journey of selecting the perfect exit strategy is a defining moment for any business owner – whether you're steering a start-up or an established enterprise. This pivotal decision involves a delicate balance of financial foresight, personal aspirations, and overarching business objectives. Today, we're not only exploring some tried-and-true exit strategies but also providing a few insights into their unique dynamics to empower business owners contemplating their next steps.

This checklist for buyers will make the selling process a breeze!

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You may have the goal to sell your business this year, so make sure you prepare! Our latest article provides you with tips on how to prepare and maximise your price.