Buying a Business

Our services for buying a business include:

  • Ensuring the business structure is set up appropriately for your needs
  • Getting all you need to operate the business
  • Protecting you from any debts or other liabilities incurred by the vendor of the business

FAQs

What you want to achieve in buying a business is to make sure that you acquire the whole business that is offered, to protect yourself against any liabilities of the business created by the owner and to ensure that you obtain value for the money outlaid.  We can assist you in achieving that goal and ensure that you obtain what you expected in entering the Contract to buy the business.

Strictly speaking, an accountant cannot act on the purchase of a business if it involves the entering into and advice on a Contract for Sale of Business.  Only lawyers who are properly qualified are permitted to provide that type of advice.

We strongly advise you to engage an accountant prior to purchasing a business.  If you do not currently have an accountant, we can help you in finding an accountant suitable to your needs.

It is important for your accountant to investigate the financial viability of the business.  Our work is limited to ensuring that the Contract for Sale of Business is effectively entered into and that it delivers good title to the business to you.  As lawyers, we are not able to provide financial advice as to whether the business is viable or is as profitable as the vendor of the business may suggest.

This is a difficult question to answer simply. The right structure depends on:

  • The type of business and the industry the business is in.
  • Who will be the owners of the business.
  • Who will be involved on a day to day basis in the business.
  • How long you expect to remain in the business.
  • The potential for growth of the business, amalgamation with other businesses, takeover of other businesses and envisaged exit strategies.

We can work with you and your accountant and/or financial advisor to assist you in determining what is the best structure.

Normally the Contract for Sale of Business is drawn by the lawyer acting for the owner of the business.  That Contract is forwarded to us and we will consider the terms of the Contract and provide advice to you on it.  In the meantime, if you have any documents provided by the owner of the business or any business broker then you should provide these (or a copy of them) to us.  This includes any financial material but, as noted above, any financial advice should be provided by your accountant.