Tourism and Events Information for Victoria’s tourism industry

Exiting your business

If your business has been significantly affected by a crisis, you will need to consider the viability of your business. While many businesses do reopen and operate successfully after a crisis, some do not.

Estimates from the United States indicate that up to 40% of businesses never reopen following a disaster and of the remaining businesses, 25% will close within 2 years.

When assessing your options, it is important to seek guidance and advice from your business advisor, accountant or lawyer.

If you do decide to exit your business, there are several  online resources available to you:

Time to exit

There are several ways in which the business owner can exit from their business, they include:

  • selling the business
  • passing the business onto a family member, partner, employee or stakeholder
  • merging the business with another business
  • closing down the business – sell off assets and cease trading
  • forced closure – file for bankruptcy or liquidation.

Take the time to assess each option carefully. Before you make a final decision, speak to your business adviser, lawyer or mentor and obtain financial and legal advice.

Consequences of continuing a business while insolvent

It's important to understand the risks if you decide to continue a business while it is insolvent. For information on the consequences of insolvent trading, speak to your accountant or lawyer, or visit the Australian Securities and Investments Commission.

Page last updated: 28 Aug 2023
Back to top
Australian aboriginal flag

We acknowledge the Aboriginal Traditional Owners of Country throughout Victoria, their ongoing connection to this land and we pay our respects to their culture and their Elders past, present and future.

© 2023 Department of Jobs, Skills, Industry and Regions

This page was printed at: