Buying a business can be a major decision to make, and it’s one that you should carefully consider. That’s why you can benefit from working with corporate lawyers who can assist you with the buying process and ensure that your interests are protected.
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.
It is for this reason that we suggest you work with our team of highly experienced small business lawyers who can help you to make the right decisions and perform all the necessary checks.
There are several steps involved in purchasing a business. The common steps are:
- 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 of 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 avoid liability and assist in the transaction running smoothly. Corporate lawyers have a wealth of knowledge in this area and at Parke Lawyers we know how to support your business from start to finish.
For more information about buying a business in Australia, contact us to guide you through the purchase.