Buying a business can be a tricky and daunting experience.
Most of us spend more time in our businesses than we do at home so we should ensure that we do something that we love.
Do your due diligence. Make sure that you check out the business fully before you commit to buy it. Have the financial records of the business fully checked by a qualified accountant and during the contract period insist on a trial period where you can work in the business to ensure that those promises that have been made to you are all true. Make enquiries with appropriate suppliers and customers so that you can really get a feeling and understanding of what is important to the business and where the main source of income is generated. Remember that a business usually has many moving parts and often the staff are an integral part of a business’s success, speak to the staff!
It is important to speak to an experienced solicitor prior to committing to a contract of sale. They will assist you with ensuring that the contract is subject to your satisfaction with the due diligence enquiries that you may make. It should also adequately deal with the transfer of all of the business items that will be required to run that business including phones, emails websites, staffing, licences and other permits.
All businesses are different and the important elements of purchase will change with each type of business it is often the case that the premises from which it is run are essential to its continued success. The lease is therefore essential to the business and the contract should provide that the consent of the landlord to a transfer of the lease or in fact a new lease as the case may be is required. Without this you may not have a premises to operate from.
Regularly as buyer needs to ensure that the seller doesn’t simply restart a new business in competition and take staff and customers and therefore it is essential to ensure and appropriate restraint clause is drafted into the contract to protect a buyer.
Regardless of the cost of purchasing the business it is a complicated transaction with many moving parts and any buyer should be sure to receive specialist advice before embarking on such a journey.
Since 1968 O’Keefe Mahoney Bennett Solicitors (OMB) have established an impeccable reputation for providing exceptional and effective legal service to Gold Coast businesses and the general community.
The expert team at OMB strive to surpass client expectations and believe in excellence, confidence, team-work, the integration of technology and the utmost in personal service.
Their vastly experienced and highly professional team provide dynamic and responsive service to all matters whilst retaining a personalised connection with each client.
Whatever the situation might be OMB Solicitors are there to provide solutions.