Whether buying or selling a business it is crucial that you obtain advice from a Solicitor before signing a contract. It is also crucial that the parties obtain taxation and accounting advice from their respective accountants before signing a contract.

Preparing a business contract is an involved process. Each contract will be very specific to the circumstances of the parties and the business.
Some of the important areas are as follows:

  • The identity of the buyer/seller
  • Advice required to how much deposit is payable
  • Retention or release of present employees and adjustment of employees holiday pay, sick pay, long service and the like
  • Quality and quantity of stock to be purchased/sold.
  • Transfer of licences by seller to buyer required to allow business to function.
  • Check/provide accounts to determine profitability of business.
  • Buyer to obtain approved finance to allow purchase to proceed.
  • Lease to be assigned or new lease. Terms of lease satisfactory to buyer?
  • What Plant and Equipment are included in the price.
  • To what extent will the seller provided initial tuition and assistance to the buyer
  • Necessary trade restrictions in place re the seller
  • How work in progress to be provided for?

Please note these matters are for guidance only and each contract will have its own particular circumstances.