Buying A Business

Buying a business is a little different from buying land. In particular there is generally no Contract of Sale available until after the purchase price and sale terms are negotiated.

Things To Consider

Once you have decided on the business that you want to buy you should contact Platinum Property Law and we will go through the business purchase process with you and let you know the types of matters that you need to raise with the Seller including:

(a)    the business assets and equipment included in the sale;

(b)   the stock included in the sale;

(c)    details of all current supplier agreements;

(d)   details of all employees on fixed contracts;

(e)    their current business structure and whether you will be acquiring shares in a company or buying a sole trader business;

(f)    what is to happen to the Business Name;

(g)   the tax situation in relation to the business;

(h)   whether there is a Lease and if so whether the Lease contains an option;

(i)     whether there are detailed books and financial records and whether there is an independent audit report;

(j)     whether all necessary approvals to conduct the business are in place; and

(k)   whether you require any restraint of trade clause so that the seller cannot set up a business in competition with you for a set period.

 

You should also contact:

• your accountant to have them review the profit and loss statements and balance sheets of the business and provide advice on the appropriate business structure for you to operate under;
• the council to make sure that the business can be legally operated from the premises which you intend on running the business from; and
• any government agencies required to give an approval to operate this type of business to make sure that all necessary approvals are in place.

 

The NSW Department of Trade and Investment provides some good advice for people considering starting a business at http://www.smallbiz.nsw.gov.au/Pages/default.aspx

 

The Contract For Sale

Once the Contract of Sale is received from the seller’s conveyancer Platinum Property Law will review it and provide you with advice on how the terms effect you. Platinum Property Law will also conduct the necessary searches to ensure that your interests are protected.

Once the terms of the Contract have been agreed upon Platinum Property Law will arrange for you to sign the Contract and send it to the seller’s conveyancer for exchange.

After Exchange

During the period between exchange of Contracts and Settlement, Platinum Property Law will prepare and send any required transfer forms and other documents associated with the sale of the business to the seller’s conveyancer.

Settlement

Platinum Property Law will liaise with your Lender in relation to the finance for the purchase, arrange Settlement cheques and organise Settlement.

We know the property business inside out. We are your one-stop property and lease shop.

If you have any questions in relation to buying a business please call Platinum Property Law.
For More Information Call Us Now On : 02 9627 7400