Buying a Business
Purchasing a business can be a complex undertaking fraught with hidden traps. Businesses vary greatly in their character and scope and each purchase is unique. It is important to understand right from the start why the seller is selling the business and whether as a potential buyer you have the skills and experience to successfully operate the business. You should always contact us prior to signing any contract or engaging in negotiations with the seller.
At P&B Law we can guide you through the purchase of the business to ensure that you get what you have been promised, highlight issues to ensure that you do not pay more than necessary and advise you on all aspects of the purchase including:
- Documentation provided by the seller.
- Whether the seller provided all the documents required to be given by law prior to signing a contract?
- Whether the purchase price represents a fair value of the value of the tangible assets of the business plus an estimated value of the intangible assets such as goodwill?
- Whether planning permits and licenses have been obtained?
- The transfer of the registered business name and/or domain names.
- Whether there are any restrictions placed by any government authorities on the business?
- Are there equipment hire contract associated with the business?
- Is the business premises owner occupied or leased?
- If leased is the landlord prepared to transfer the lease?
- Who is liable to pay for preparing the assignment of Lease?
- Are you (and your accountant) allowed to properly examine the financial records of the business?
- How do you manage the issues of outstanding debtors and creditors?
- How can the seller be stopped from competing with the newly purchased business?
- The consequences of retaining the sellers employees.
This list is not exhaustive and you should consult a properly qualified legal professional before signing any contract. Our solicitors can assist you in minimizing the risks involved in buying a business by reviewing important representations made by the seller and incorporating these representation into the Contract document.
We also offer advice in regards the most suitable business structure and protection of your personal assets. If you have any questions regarding the purchase of a business – please contact us for prompt service.