Buying or selling a business involves more than agreeing on a price. Contracts, assets, liabilities, employees, leases and other obligations can all affect the transaction.
Buying a Business
Purchasers should understand exactly what they are acquiring. This may include assets, stock, goodwill, intellectual property, contracts and licences. It is also important to investigate outstanding debts, obligations or disputes before completing the purchase.
Selling a Business
For sellers, the sale agreement should clearly establish what is being transferred and which responsibilities remain with the seller. Confidentiality, restraint provisions, employee arrangements and existing contracts may also require consideration.
Consider the Lease
If the business operates from leased premises, the lease should be reviewed carefully. Its terms and whether it can be transferred to the purchaser may affect the transaction.
Get the Legal Documents Right
A business sale may involve several agreements and legal requirements. Professional legal advice can help identify potential issues and ensure the transaction documents reflect what has been agreed.
Whether buying or selling, careful preparation can help reduce avoidable legal complications.