Talking shop with a trade business owner in Warragul, Victoria this week about holding companies and business sales.
A lot of trade businesses are built around contracts.
The tricky part is buyers often need to buy the actual company itself because changing entities on contracts can trigger procurement reviews or even new tenders. Limits flexibility.
A holding company can be beneficial later. Holding company owns assets & property vs Operating company has the legal contracts with clients & employees etc..
Keep the property.
Keep some machinery.
Sell only what the buyer actually wants.
Or separate the contracts from the assets completely.
Example; New business owner walks into the operating company and services contracts with their own equipment/property.
Stuff most owners never think about when starting a business.