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Peter – FS Administrator
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Hi cyoung,
Thanks for joining and posting your question. In a nutshell my view would be that the vehicle needs to be factored in either way. Which way would depend on what you and the buyer negotiate.

There is generally no black and white rules with negotiating the value/price of a business, but broadly speaking you’d disclose all the assets and the liabilities so they can be weighed up when negotiating a fair price.

So if the liability will be passed onto the new owner then it would need to be factored into the overall price – downwards as a liability.

But if you pay out the loan yourself and then include the vehicle as part of the cost then it would also need to be factored into the overall price – upwards as an asset.

Alternatively if you keep the vehicle then it comes out of the business value. But if the vehicle is essential to the business then the buyer would need to acquire one if they don’t have one already.

But the overall price you can demand will rely on a whole lot of other factors outside of this. That’s my two cents, but some the business broker/sales experts may have specific advice on the nuts and bolts of this!

All the best with the sale, Peter