Our top tips for business sale and purchase

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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.