When buying an established business there are many matters that must be considered. We can assist you in every step of your purchase, advising you on issues such as:-
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The business structure: An initial matter you should address when considering the purchase of a business is the structure of the entity with which you wish to own and operate the business. For example, you may wish to proceed as a sole trader or partnership. Alternatively, you may wish to have a company enter the transaction or even set up a trust. The choice between appropriate structures depends upon factors such as tax planning, asset protection, finance availability and compliance costs. We can assist you in identifying such issues, though the choice of structure is often a matter which you ought to discuss with your accountant (we can liaise with your accountant in this issue)
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The contract: The vendor (seller) will usually have its solicitor prepare the Contract for Sale of Business. The contract will usually contain not only the purchase price and terms relating to the transfer of the business, but many other issues such as the lease (if any), transfer of business names and a list of equipment/assets. We will advise you on the terms of the contract, explaining their effect to you. If it becomes apparent that the terms of the contract do not give full effect to your intentions we can negotiate on your behalf with the vendor (usually through the vendor’s solicitor) for amendments to the terms of the contract, to add or remove certain provisions.
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The business premises: We can assist you in securing the premises from which you will conduct your business. This can be by way of lease – either a new lease or the assignment of an existing lease, depending on the circumstances – by way of a licence to occupy or by purchasing the business premises. We can act on your behalf in relation to all such property transactions.
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Finance: Often it is necessary to obtain a loan in order to purchase a new business. We can advise you on the terms of your lender’s finance documents (loan agreements, mortgages etc) and liaise with your lender to ensure that funds are available for settlement of your purchase.
It is imperative when purchasing a business that you seek proper legal advice. Our business and commercial lawyers have extensive experience in these transactions and will guide you through the process.
Please contact us on (02) 9521 2222 to speak with one of our business lawyers today. You can also send through your enquiry online now and we will contact you shortly.