Thanks to a special provision created in the Federal Government's new superannuation and retirement measures, the remaining months of 2006/2007 present a unique window of opportunity for anyone who is highly cashed up or will be cashed up through selling their business.

It is a unique opportunity for anyone wanting to sell their business and retire.

The unique circumstances expiring on June 30, 2007 are the result of reforms made by the Federal Government to the superannuation and retirement system.

A report dated September 5, 2006, released by the Federal Treasurer outlines the outcomes of the changes initially announced on May 10. It indicates that a few people could be disadvantaged through the modification of limiting undeducted superannuation

contributions to $150,000 per year or $450,000 over a three
year period from the previously unlimited amount. It meant that some people who planned to retire at or before June 30th 2007 would suffer some disadvantage by not being able to place larger amounts into their superannuation.

As a consequence, a transitional measure allows people to put up to $1 million of post-tax contributions into their superannuation fund during the period between May 10, 2006 and June 30, 2007.

The $150,000 and $450,000 cap on post-tax contributions will begin on July 1 2007.

In essence, what this means is that a business owner who has successfully sold his business could put $1million of his after tax sales proceeds into super by June 30, 2007, then $450,000 on July 1, 2007 - but no more after-tax contributions until July 1, 2010.

It's an interesting opportunity as putting money into superannuation in this circumstance is better than putting the money into an investment like shares because superannuation fund earnings, are exempt from tax once the member retires and commences living off the fund.

So $1 million earning 7% or $70,000 on itself, inside super would in essence be tax

free when paid to the fund member whereas a share portfolio outside of superannuation earning $70,000 would be subjected to the taxpayer's marginal rates.

If business owners are to take this opportunity they need to implement a good business sale action plan quickly as there is not much time left.

The key is planning ahead.The more homework done, the more people are willing to pay for it.

If you have considered where the key value of your business lies well in advance, and you have taken time to nurture, protect and even document this value, it becomes much more transferable to a potential buyer. Good selling preparation involves bedding down processes for ease of succession.

Another key factor you need to consider early on in your business is developing strong relationships with partners and industry bodies. Most business sales are “in­trade” sales which

means that the acquirer is usually someone from your industry.

Building a good reputation and developing strong rapport with suppliers, partner companies and even competitors is not only good for current but future business too.

Planning ahead is indeed vital to the final sale price of your business. Not planning ahead and waiting too long to start the process often means selling the business at liquidation rates.

There are other common mistakes that get in the way of a successful sale.

Not engaging a professional broker and

appropriate advisors may result in:

• Incorrect pricing for your industry
• Loss of confidentiality
• Not understanding tax consequences
• Allowing the buyer to control the process
• Neglecting the business during the sale process

Take a step back and look at your business in relation to where you'd like to be in the future. Be prepared right from the beginning and you'll improve your chances of securing a desired selling price for your business.