Legal Issues When Buying A Business

Legal Issues When Buying A Business

Buying a business is an important decision.

There is a lot of what is called due diligence that has to happen before the deal can be done.

Quite a lot of those issues relate to legal and financial matters.

So it makes sense to involve your lawyer and your accountant as well as consulting with an industry expert in your field sooner than later.

The sort of things that should be foremost at this early time include;

What is the final purchase price?

How am I going to fund this?

What am I am actually buying?

Am I buying shares in the business or its goodwill and assets through a separate new structure?

What is that business structure that I should be using?

What do the accounts look like?

Is there a lease? For how long? Will the landlord approve me to take over?

Exactly what inventory am I getting?

When do they handover the business to me?

How long will stay on and train me for?

Legal Issues When Buying A Business

Legal Issues When Buying A Business

And so on and so on, …. as there are dozens of live issues that you need to think about before shaking hands on the deal and having everything put together into a written contract.

Every business is different in type and nature. So the issues that come up vary.

We like those considering buying a business to contact us early on.  Preferably once they are reasonably sure they are committed to proceeding.

In that way we can sit down with you for an early face to face consultation and map out all the issues that need to be considered.

This makes you look professional and prepared. It will also make the deal go through quicker and more smoothly when the time to exchange contracts comes along.

Foresight is better than hindsight we also say.

Here is another article I also wrote recently on purchasing a business.

Click Here

Legal Issues When Buying A Business

Here is a link to some further useful information on business purchases from The Law Society of NSW.

Click here

Call us now about buying a business on telephone 9528 0235.

We can then sit down with you at a convenient location. You can come to either our Crows Nest office on Sydney’s lower North Shore or at Jannali in the Sutherland Shire.

Paul Ippolito is Principal of Ippolito Lawyers. He is an experienced commercial lawyer who works with small business owners, both new and established ones. Paul has also lectured for nearly a decade in commercial and corporate law at the NSW College Of Law.

 

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