Women In Business

Buying a business – where do you start?

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The decision to buy a business is an important one that should not be rushed into. There are many aspects to consider, including some that may not be apparent on the surface. It is always best to check closely into all aspects of the business and the sale. You should ensure that you receive comprehensive advice not only from a lawyer, but from your accountant, financial advisor and insurance broker.

Below are some points you should consider before signing on the dotted line:

1. Finance

Ensure that you have or can arrange the finance before making any commitment. This should include a full understanding of any loans or any other financial arrangements you enter into.

2. Research

Obtain as much information as you can about the business, including the location, current customer base, marketing strategies and look into the background of why the business is for sale

3. Organisation structure

  • Make sure you obtain an understanding of the current business structure, including key players in the organisation, any stakeholder commitments, and current contracts.
  • Ownership

Consider the structure in which you will purchase the business, ie, in your personal name, company, partnership or on behalf of a trust.

4. Employees

Consider whether you will be taking on existing employees, or may have to make arrangements for job losses or redundancies. Also scope out whether you need to look for additional or different skills in people to meet your business goals.

Buying a business can also bring about a significant change to your circumstances, so you should also consider asset-protection strategies, superannuation and estate planning.

It is important that you obtain the right information before purchasing a business. We can provide legal advice on buying and selling a business and other commercial contracts.

 

DISCLAIMER: This article is provided to clients and readers for their general information and on a complimentary basis. It contains a brief summary only and should not be relied upon or used as definitive or complete statement of the relevant law.

About Anna Zdrilic

Anna Zdrilic is the Principal, Commercial & Property at MatthewsFolbigg Lawyers. Anna is contactable via [email protected]

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