SECTION FIVE: SUCCESSION PLANNING (11 marks) Although Josip and Marnie have enjo
ID: 422342 • Letter: S
Question
SECTION FIVE: SUCCESSION PLANNING (11 marks)
Although Josip and Marnie have enjoyed the experience of operating their own small business, they both wish to leave the business and because they have other future plans.
REQUIRED:
Write a professional letter to Josip and Marnie that states what they need to consider before listing their business on the market for sale. This may include:-
1) What should be considered as worth mentioning in their ‘business for sale’ contract, such as:-
a.Assets, such as, furniture, fittings, equipment, computers.
b.Their expertise assistance
c.Employees
d.Exit process and period by Josip and Marnie
d.Warranties
e. Accounts receivables and accounts payables
2)
Consider their current financial situation e.g. current debts.
Explanation / Answer
Dear Josip and Marnie,
Hope you’re doing well.
I am aware that you have decided to move on from your business and plan for some new commitments. Before closing your business I would like here to mention hew aspects to be taking care before handing over to other organization/individuals. I have mentioned the below things to take care by transferring the Propertiership by appropriate Legal Formalities as a priority.
During this transition make sure you adhere to the required statutory & legal norms & get them approved by different stakeholders for your safety. I also suggest you to please consult other Subject Matter Expertise.
I would wish you both of you a very good luck & best for the future.
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