Care should be taken when buying a business to ensure that the transfer is properly effected and that you are properly protected.
Contracts are legally binding and our experienced solicitor should check the documentation before signing.
You should also seek advice from your accountant in relation to all the records for assets and liabilities, taxes and financial elements of the business.
Consideration should be given to what type of entity will buy the business – individual (sole trader), company, partnership or trust and the tax implications of the purchase. Be aware of the effect GST may have on your purchase.
Once you have decided, on the basis of the your due diligence and assessment of the risks involved, you are comfortable with the purchase, the team at Chidiac Legal are able to assist you with closely reviewing the draft Contract for purchase of the business.
We will assist you with:
- Reviewing the Contract for sale of business and inform you generally of any potential pitfalls or issue of concern with the business
- Negotiating amendments to the draft Contract including consideration of any vendor’s warranties and restraint of trade clauses
- Reviewing the ownership documentation of the business (including company and business name searches)
- Verifying ownership of the business’s intellectual property (trademarks, patents, brand names, logos etc.)
- Reviewing the lease documentation and advising you as to your rights to occupy the premises from which the business is conducted
- If necessary, arrange for new lease documentation to be prepared over the premises
- If necessary, arrange for a transfer of the existing lease over the premises (including obtaining the lessor’s consent to the transfer)
- Obtain replies from the vendor to relevant title questions
- Attending to stamping requirements
- Arranging for the transfer of the business name, supply contracts, etc
- Arrange and attending to settlement; and
- Report to you in relation to your purchase settlement.
For more information on how we can be of assistance please contact Richard Chidiac on (02) 9707 3888 or info@chidiaclegal.com.au.