Buying a business is a major decision. There are many things to consider and be aware of. Get it wrong and it can be a disaster get right and it can be a great adventure.
When looking at buying a business the first thing you must do is conduct a thorough due diligence.
Due diligence is the process of assessing and testing all the information about the business. Only after you have all the information are you able to make a commercial and unemotional assessment on whether the price is reasonable, and business are right for you.
Due Diligence Checklist
Our Due Diligence checklist is a good starting point and can help you through the process. Get a free copy of our checklist for selling a business created especially for business vendors.
Legal and Accounting Advice
Once you have identified a business to buy you will need legal and accounting advice. This will ensure get what you bargained for and there are no hidden surprises. We can help you with the legal advice. We are experts in all stages of the business purchase process.
We regularly advise on:
- Due Diligence
- Contract negotiation or contract review
- Legal structuring
- Settlement and transaction completion
Partnership Agreements and Shareholder Agreements
If you are partnering with someone else, then you will need to look at a Shareholder agreement or Partnership agreement. It is important right from the start to set out in a formal document how you will run the business. The agreement covers many things but some important issues to consider are:
- initial cash contributions and future obligation to contribute cash
- how to deal with a situation where one part wishes to leave voluntarily
- how will you deal with death or incapacity of a party?
- must all decision be unanimous?
- how and when will the income of the business be paid
- what contribution does each party need to make
We have helped hundreds of people with their business purchase. We employ accredited business experts which means we are experienced, cost effective, proactive and can help you.