Buying a business
When buying a business, buyers should consider:
- Negotiating a sale agreement, usually drafted by the seller
- Restraint of trade clauses to stop business in competition
- Assets such as property, equipment, fittings and rights to use names
- Liabilities to creditors
- The risks of the business
- Leases and assignments from seller to buyer
- An independent valuation the business
- Whether the price of the business is fair
- Tax issues, including GST
- The structure of the seller
- Conducting due diligence checks
- Staff and current employment agreements
- The WorkCover record of the business
- Licences, patents and trademarks
- Contracts with customers
- Whether the business has future work or contracts
In Australia, the business.gov.au website provides information on planning, starting and growing a business, whilst in NSW, the Small Business Commissioner provides a toolkit for small businesses and business management advice through Small Biz Connect.
LME assists buyers with all their needs for purchasing a business, including advising clients on the sale of business agreement, negotiating with the seller and due diligence checks.