Buying a business:

Purchasing a business is difficult. There are a broad range of commercial and legal risks that need to be thoroughly considered. Some of those risks are obvious. However, there are many facets of a commercial transaction that are only clear to experienced Business Lawyers.

There are a number of pre-exchange inquiries that we would normally recommend to our clients. Obviously these are unique to each business. Generally however, purchasers should consider conducting a financial investigation and inspection of the business books and records, completing a search on the business name and intellectual property owned by the business and conducting a valuation of the equipment, stock and plant equipment. The failure to carry out adequate research and pre-exchange enquiries can be one of the biggest mistakes a business purchaser makes.

Other issues that may need to be addressed include:-

• Whether a new lease should be prepared or whether a pre-existing lease should be transferred;
• Adjustments of employee expenses and entitlements;
• The secure transfer of intellectual property and trade marks;
• The value of goodwill; and
• Stamp duty.

If you are looking to purchase a business, you should ensure that you have consulted an experienced Business Lawyer. Our Business Lawyers can guide you through the process and help you identify the traps and pitfalls so that you do not start off on the wrong foot. With a wealth of knowledge and experience, we can help you make the right business decision.

Other than the conveyancing aspect of a commercial transaction, you will also need to consider the tax implications which flow from purchasing and operating a business. Income tax, Capital Gains Tax (CGT) and Goods and Services Tax (GST) are just some of the things you will need to think about. Our team of Tax Lawyers can assist you to get your tax affairs in order and help you develop strategies to achieve your business objectives in the most tax effective method.