What to Consider When Buying and Selling a Business?

When considering purchasing or taking over an existing business, understanding the terms and conditions of the transaction is crucial. This means that the seller must provide you with:

• A purchase and sale agreement;
• A lease agreement; and
• A disclosure statement.

When buying an existing business, it’s also important to pay attention to other details, including:

• Existing employees and their benefits;
• Relevant licenses; and
• Lease agreements.

At the same time, we strongly recommend that you hire a lawyer to assist you in the process of buying or selling a business. Lawyers can review documents to ensure their legality and accuracy and provide you with strategies to minimise risks. For example, you may consider implementing a trial period before exchanging any funds. This way, if you find that the information provided by the seller is untrue or incomplete, you can refuse to pay.

Whether you are a seller or a buyer, if you need assistance with buying or selling a business, please contact us. Our commercial lawyers are happy to answer your legal questions regarding commercial leases and provide you with professional and efficient strategies to protect your interests.

Source: https://business.vic.gov.au/business-information/buy-a-business/buy-an-existing-business

*Disclaimer: The above content is to provide general legal knowledge, and should not be regarded as targeted questions for your individual problems. The law is complex and we strongly recommend that you seek professional legal advice. Canaan Lawyers will not be liable for any loss or damage caused by any person due to the information contained or omitted in the above content.