Buying a business? Establishing yourself as a business owner presents an important (and exciting) opportunity to start an association with a trusted legal professional. In our latest blog post, we discuss some of the important considerations to keep in mind as you progress through this exciting period.
Undertaking satisfactory due diligence is an important stage of any purchase and the necessary due diligence will vary depending on the business you are buying, your appetite for risk and a range of other factors. Undertaking due diligence on a business can include (but is not limited to):
- Conducting a thorough review of the records of the business (including financial)
- Understanding the employee situation, including their rights and your obligations
- Reviewing any lease of the businesses premises
- Researching the market to understand current and future demand
- Gaining knowledge of stock levels, intellectual property and other assets of the business
- Ensuring the business has the correct permits/licences/registrations to operate.
Once satisfied with the due diligence process and any further information uncovered, consideration must be given to how the business will be structured to suit your circumstances, tax position and appetite for individual liability. There are range of structures available and your legal advisor will guide you through your options.
Before signing a contract for the purchase or sale of a business, it’s also advisable to have your legal advisor review the contract to ensure it protects your rights and includes key terms such as:
- Restraint of trade for the vendor
- Retention of key employees
- Training or assistance from the vendor.
We’re here to help. With extensive legal knowledge and an in-depth awareness of commercial realities, our commercial team would love to discuss your commercial purchase or sale. Call or email us to arrange your consultation.
*The legal information in this article is of a general nature only and not intended to be legal advice to rely upon.