Quick Snapshot
- Industry: Manufacturing (Furniture Supply)
- Location: Queensland
- Situation: Stalled business sale and growing ATO tax debt
- Outcome: Sale completed, tax debt finalised, director exited with no personal exposure
The Situation
A Queensland-based manufacturing business supplying furniture to retirement facilities approached de Jonge Read® after the director had decided to step away and return to regular employment.
A sale to a competitor had been in progress for over two years but remained unresolved, with negotiations repeatedly breaking down.
During this period, ATO tax debts continued to accumulate, and ongoing accounting costs increased the financial pressure.
The Problem
The director was unable to exit the business due to the stalled sale and growing tax liabilities.
With outstanding tax debt:
- The director faced Director Penalty Notice (DPN) risk
- The sale process remained uncertain despite extended negotiations
- Ongoing delays increased both financial pressure and personal exposure
Without a structured approach, the director remained tied to the business and unable to move forward.
The Solution: de Jonge Read®’s Expertise
We worked with the director to establish a controlled exit strategy.
Once the prospective purchaser became aware of the intended course of action, we were able to:
- Fast-track the sale process, bringing the long-delayed transaction to completion
- Finalise the sale, albeit at a reduced price, to achieve certainty and closure
Following the sale, we implemented a controlled liquidation of the remaining entity to:
- Deal with outstanding ATO tax debt
- Halt further accumulation of liabilities
- Remove exposure to Director Penalty Notices (DPNs)
The Outcome
The structured approach enabled the director to complete the sale and exit the business.
Key results:
- Business sale finalised after more than two years of delays
- ATO tax debt addressed and no further accumulation
- Director Penalty Notice (DPN) exposure removed
- Director exited the business and moved into new employment
Key Lesson
When a business sale becomes prolonged and tax liabilities continue to grow, delays can increase both financial pressure and personal risk.
A controlled exit strategy can provide a pathway to finalise the sale, address outstanding liabilities, and allow the director to move forward.
If you are dealing with a stalled business sale, ATO debt, or DPN exposure, the team at de Jonge Read® offers confidential, no-cost initial advice to help you understand your options before the situation escalates.
This case highlights how manufacturing business owners in Queensland facing stalled exits and growing ATO debt can use a controlled exit strategy to complete a sale and remove personal exposure.
Should you have clients or associates that you know are struggling with financial issues or need assistance in reviewing their business affairs in preparation for what’s around the corner, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Contact us now on p. 1300 765 080 | ua.moc.arjd@ofni
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
