BUYING BUSINESS
Buying business is an important legal and financial commitment so it’s critical that you make sure you seek the right professional advice to avoid any pitfalls.
Before buying, following should be taken into consideration seriously:
- Whether or not you have appropriate qualifications/or experience to manage the business;
- Whether or not there are any competitors or new developments that will affect the future financial viability of your business
- Why is the vendor selling the business;
- Have you calculated the ROI, the return on investment rate, if the purchase is a good investment;
- What is the requirement of the cash flow, and do you have enough funds to ensure the operation.
JP Conveyancing Associates (JPCV) will review the Agreement for Sale of Business and explain the terms of the agreement with you.
We’ll also discuss the best legal entity for your purchase of business – your individual name, company, partnership etc. We advise that you discuss the apportionment between goodwill and plant & equipment with your accountant according to your circumstance.
What involved in the purchasing process:
- Negotiating the terms of the purchase with the vendor including price, deposit, time of completion and whether you would like to retain the existing employees;
- Carrying out due diligence check;
- Obtaining the necessary consent from the lessor to either a transfer or assignment of existing lease or negotiate the terms of a new lease;
- Decide on the purchasing entity and if applicable, establish a new company, partnership name etc.
- Obtain advice from your accountant;
- Ensure the purchaser is registered for GST.
After exchange, you can rely on JP Conveyancing Associates (JPCV) for the following:
- Serve the ‘requisitions on title as to the business’ which are a series of questions about the business;
- Advise you on the vendor’s obligations;
- Prepare any transfer documents relating to business names, trademarks etc;
- Review the transfer/assignment of lease documents and or any new lease;
- Ensure the stamping of the contract; and
- Arrange and attend on the settlement.
After Settlement:
JP Conveyancing Associates will ensure all transfer documents are completed and lodged with the relevant authority. We’ll also ensure the lease is transferred/assigned and/or the new lease registered at the NSW Land Registry Services.