Buying a Business
Before proceeding with the purchase, there are a number of important areas that we will assist you with. These include reviewing:
Why is the business for sale?
Who owns the name and will it be transferred to you? Is the name registered as a business name? Is there a trademark registration issue?
What is the best, most effective business structure for the purchase of the business – sole trader, partnership, company, trust?
Will you need to register the new business, company name and/or trademark to ensure protection?
What is the company’s sales history including sales trends, customer base and location?
How profitable is the business compared to its turnover? What are the current fixed and variable costs?
Are there agreements in place with suppliers, landlord, sub-tenants, staff or contractors?
What will you be locked into? Is ongoing supply of essential products and services guaranteed?
What staff employment contracts are in place?
Will you be inheriting staff, or re-employing?
How long is left on the lease?
Does it permit an assignment, and if so, on what terms? Is the landlord likely to agree to a mortgage of the lease in connection with financing the purchase?
What assets does the business own (including intellectual property)?
Does the vendor own any assets personally?
What are the current liabilities of the business?
These may include: outstanding debts; refunds and warranties; tax arrears for GST, PAYG, CGT and stamp duty; and long service leave, accrued holiday or sick leave entitlements.
Where is the owner going?
Do you need to include a restraint in the purchase contract to protect your investment?
Selling a Business
It is also just as vital to plan adequately for the time you leave your business, “your exit strategy” – either by selling the business, retiring from the business, handing down your business or in the worst case, due to ill health. A succession plan outlines how that exit will occur. Our expertise in assisting with business succession planning is considerable, and we aim to ensure you can maximise the value of your business and transition its ownership smoothly.
Experience
- Some of the business purchase and sale transactions that Long Saad Woodbridge has acted on include:
- Sale of large hotels in Sydney CBD
- Purchase and sale of pharmacies, and
- Sale of a national company contracted to the Department of Defence.
Contact us and we can help you seize the opportunity, manage the risk and achieve a great outcome in the buying or selling of a business.
