Parke Lawyers are Accredited Specialists in Business Law. Our specialist lawyers can provide you with advice before you sign a contract – including all necessary due diligence work. The purchase of a business can be a complex process and one that consists of various steps that you need to be familiar with. When buying a business, you may be so involved in the process that you forget about external issues that may influence your purchase.
The steps typically involved in purchasing a business include:
- pre-contractual negotiations where the parties decide the essential terms of the transaction such as purchase price, settlement date and the assets being transferred with the business
- formal contract preparation and execution. The written contract will normally be prepared by the vendor’s lawyer and should contain all the essential terms agreed between the parties
- pre-settlement process where security interests are released, financing is finalised and arrangements are made for the transfer of third-party contracts
- settlement when money is handed over in return for the business operation and formal leases for premises are finalised
- post settlement where security interests are registered and relevant government registers are updated
If mishandled, each of the steps in the transaction can expose the purchaser to significant liability. It is essential that you seek appropriate advice for every step to minimise risk and ensure you maximise the value of what is being acquired.