Our top tips for business sale and purchase
Special consultation offer:
Only $200 incl. GST for a 1 hour initial consultation
Whether you are thinking of buying or selling a business, we understand these transactions can be complex. We work closely with our clients to achieve the best possible outcomes, and guide them through the process. Read on below to find out our top tips for preparing to sell, or buy a business.
How does the sale or purchase of a business work?
Ordinarily a business sale and purchase transaction can be carried out with the assistance of a business broker, or through a private agreement (without a broker). Either way, it is always recommended that a lawyer drafts or reviews the sale and purchase agreement and assists you with completing settlement. Buying or selling a business is a specialist area so it is important to get legal advice to ensure you get the best return on investment.
Our top tips for preparing your business for sale:
Consulting with your accountant to ensure your accounts and financial records are up to date and accurately reflect the businesses’ performance
Ensure key contracts such as leases and franchise agreements are properly documented and able to be assigned
Obtaining a valuation of your business
Seeking legal advice regarding the proposed terms of the agreement for sale and purchase
Consider what warranties will be given and any restraints of trade
Review any potential intellectual property matters
Engage a business broker who is familiar with your industry
Our top tips for purchasing a business:
Do your research of the business, market and industry
Find out why the business is for sale
Seek a professional representative for thorough advice and to enhance your credibility as a buyer
Conduct due diligence to understand what assets, liabilities and commercial potential the business has
Ask your accountant to go over the financial picture painted in the sales documents
Understand the value of the business in both goodwill and assets
Obtain legal advice to draw up a clear and watertight contract
With the end of the financial year coming up, many are considering selling their businesses. The team at Dawsons are happy to assist our clients through all aspects of the transaction, so get in touch now.