Business purchase lawyers Melbourne and Ballarat

Buying a business is exciting, but there are so many things to consider. It’s worth getting business advice to make sure you don’t get caught out. From helping to complete due diligence on the business to determining the best business structure for your new venture, our experienced lawyers can guide you through the process and make sure all the paperwork is in order.

Our experienced business purchase lawyers can give you advice so that you can complete your transaction and focus on running your business.

Due diligence

When purchasing a business, it’s important to undertake due diligence. This involves looking at different aspects of the business to make sure there are no surprises after the purchase has gone through. Due diligence can also help you work out what a fair price is for the business and identify any specific warranties or indemnities that you want the seller to provide in the sale contract.

A thorough due diligence can include reviewing the existing agreements that the business has in place, their financial position, their assets and liabilities and business structure. You may also choose to bring in your accountant or other business advisers to assist you in the due diligence.

Business structure

How you structure your business purchase may have a significant impact on the financial performance of the business into the future. Whether you’re using a company, joint venture, partnership or trust can also have tax and legal implications. Each business structure has different operating costs and ongoing administrative and regulatory requirements. Which one is best for your business can depend on a range of factors including your long-term business goals and the level of control you want to have over the operations. Before you purchase your new business, it’s a good idea to seek advice on the best business structure to minimise costs and ensure that your new venture is set up to suit your needs and business objectives. We will work closely with your accountants and financial advisors to ensure that we create the right structure for you.

Why MNG Lawyers

Our business purchase lawyers know what you need to look out for when buying a business. Once you’ve decided to go ahead, they can then explain your options when it comes to structuring the transaction, arrange the purchase agreements and ensure all the business assets, licenses and leases are transferred to you. Our lawyers listen to your needs and help you finalise your business purchase as quickly as possible.

Frequently Asked Questions

There are several legal aspects that should be reviewed when doing your due diligence. Depending on the business these may include:

  • Lease agreements and how to transfer them;
  • Licensing arrangements that are in place;
  • Trademarks, business names and other intellectual property that the business owns;
  • Supplier and customer agreements;
  • Employee entitlements that may be outstanding (like long service leave) and the contracts of senior employees;
  • Any goodwill attached to the business;
  • Transferring a liquor licence;
  • Transferring health food registrations and licences;
  • Tax and financial records to ensure there are no outstanding or significant issues; and
  • The vendor’s statement (if applicable).

If you’re purchasing a business that costs less than $450,000 the seller must give you a Section 52 statement, also called a vendor’s statement. This provides some of the information that you may review in the due diligence including the financial performance of the business in the last two years.

Providing a vendor’s statement is a legal requirement, and the business purchase may be voided if the seller doesn’t provide it to you.

Get in touch today, always in confidence.

We’re here to help. It’s our top priority to ensure your needs and concerns are met every step of the way.
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