Buying a business
If you are considering buying a business there are a number of essential steps that we are able to assist with. These include:
Undertaking due diligence – Due diligence may encompass such things as reviewing the sales history, considering financial records including profit and loss statements, business expenses including wages and running costs, completing an inventory of all assets and liabilities and interviewing key personnel.
Securing finance – Sufficient funds will be needed to cover not only the purchase price for the business but also for Stamp Duty and possibly GST.
Business structure – Before purchasing any business you need to consider which business model or structure will be most appropriate for the type of business you are buying.
Contract documentation – Before purchasing a business we recommend you obtain legal advice to ensure that what is being offered by the Vendor for sale is actually the same as what you think you are purchasing.
After completion – Once contracts are signed and exchanged we can advise in relation to payment of stamp duty, registration of your business name and lodgement of any documents for registration such as commercial leases.
Selling a business
A key element to successfully selling a business is obtaining early legal advice to ensure that the sale proceeds smoothly.
For any sale of business there are multiple matters that need to be considered including:
- Preparation of contract documentation including confidentiality deeds (often needed prior to entering into any negotiations with a prospective purchaser);
- Calculation of the purchase price;
- Negotiating with prospective purchasers regarding terms of the contract including inclusions and exclusions;
- Structuring the sale – Does the sale involve the transfer of shares for part of the business or is it an outright purchase of the entire business
- Consideration of what is included in the sale – Is it just the business name and goodwill or plant equipment and stock included in the purchase price?;
- Employment issues – are existing employees to be kept on by the incoming purchaser and liability for existing employee entitlements;
- Whether there needs to be a transfer of contracts with suppliers and clients;
- Property considerations including lease arrangements for business premises;
- Costs of the sale such as broker commissions, legal fees, payment of current business debts and any costs associated with transferring a premises lease;
- Additional considerations involved in buying or selling a franchise business;
- Tax (including GST and capital gains tax) and stamp duty implications.
Purchasing or selling a business can be a life changing event. As such, it is comforting to know that all legal aspects of the transaction are able to be handled by skilled and experienced legal professionals who will act with your best interests in mind at all times.
We recommend you contact us as early as possible in the sale or purchase process to ensure that we are able to fully assist you with this important life event.
If you need any assistance contact one of our lawyers at firstname.lastname@example.org or call +61 2 9212 2422 for a no-obligation discussion and for expert legal advice.