Buying a Business is a complex matter and it involves not only acquiring the proper ownership of the business but also other considerations which are essential to ensuring that the business you are about to acquire is viable and includes all the plant and equipment that you are expecting to acquire in that business.
Starting or buying a business should not be taken lightly. Any prospective business person needs to consider various commercial, financial and legal
- Obtaining appropriate legal, financial, business and accounting advice.
- Preparing a business plan.
- Undertaking appropriate due diligence.
- Knowing what skills and knowledge are required.
- Obtaining appropriate tuition and training.
- Understanding staffing requirements including are staff motivated and properly skilled, licensed and trained.
- Verifying that no only all plant & equipment is in good and proper working order but also that you will acquire good title for it.
- Checking that stock is at sufficient levels, correctly identified/labelled and of merchantable quality.
- Ensuring all administrative procedures are documented and workable.
- Ensuring there is sufficient capital to finance the business venture.
- Making sure the business accounts system is up to date and correct.
- Properly assessing present and forecast costs, liabilities, income, cash flow and profits.
- Confirming taxation obligations.
- Clarifying the terms & conditions of any business loans.
- Checking the terms & conditions of any chattel hire purchase, rent or lease agreements.
- Understanding security obligations in relation to mortgages, charges, guarantees, etc.
There are a myriad of legal issues to also consider, which will vary depending upon the particular business and industry.
- What structure should be adopted—sole trade, partnership,company or trust ?
- If you are going into business with someone else do you have an agreement such as a partnership or shareholders agreement dealing with ownership, management and exit strategies;
- Is there a properly drawn agreement or contract in relation to the purchase of the business ?
- Do you understand the statutory and regulatory obligations applicable to the business and industry and have they been complied with ?
- Whether intellectual property rights attach to the business and are these protected;;
- Whether there are any current or expected legal proceedings that may impact on the business or you;
- Ensuring that you understand your rights and obligations in relation to employees;
- Ensuring that you have understood the terms & conditions of any premises lease or license and have they been complied;
- Obtaining the landlord given consent to your occupation and use of the premises;
- Ensuring the premises suitable for operation of the business;
We will help you with:
- Preparing terms of a Contract that will ensure what due diligence you should consider;
- Undertaking necessary searches;
- Advice about issues relevant to start up businesses and existing business acquisitions;
- Drafting all relevant documentation;
- Ensuring that you satisfy all applicable Council, State Government and Commonwealth government compliance and registration requirements; Ensuring that all of the leasing requirements have been met;
- Settling the acquisition;
- All matters incidental to the above.