If you are buying or selling a business, you need TGB Lawyers’ dedicated legal team to stand alongside you, and make sure your best interests are looked after! There can be a lot of things to consider, including:
- Due diligence
- Business structure – what will suit you best?
- Transfer of business assets
- Contract negotiation and drafting
- Provision of written communication to purchaser (Form 2)
- Leasing of premises if required
Due diligence in the context of buying or selling a business refers to the process of conducting a thorough investigation and assessment of the business’ legal, financial and operational aspects before completing the transaction. It is a critical step to ensure that both the buyer and the seller have a comprehensive understanding of the value, risks and potential opportunities of the business.
The size and complexity of the transaction often determines what investigations need to take place prior to the sale or purchase of a business. During the due diligence process, TGB Lawyers can assist you by conducting investigations into some or all of the below areas as required:
- Legal compliance
- Intellectual Property
- Employment law matters
- Regulatory and compliance requirements
- Litigation and dispute resolution
- Negotiation and contractual assistance.
Don’t go it alone during what can often be a complex transaction, with many moving parts to consider! TGB Lawyers’ Commercial team can help you to mitigate the inherent risks that exist when buying or selling a business in Australia.
It is so important to choose the right structure for your business. How your business is structured can have a significant impact on legal and operational risk, tax obligations and benefits, costs and asset protection.
We delve into the four most common business structure types on our Business Structuring page, to help you find the best solution for your business.
Transfer of business assets
In the context of buying or selling a business, the transfer of assets is a crucial aspect of the transaction. TGB Lawyers can provide valuable advice and assistance throughout this process, including:
- Asset identification and evaluation
- Due diligence
- Purchase or sale agreements
- Transfer of ownership
- GST considerations
- Restraint of Trade.
We understand that the sale or purchase of a business can be a stressful time, with many aspects to consider. We aim to ease the pressure by making sure your interests are protected, completing the necessary documentation on your behalf, and helping you understand any risks or challenges involved.
Contract negotiation and drafting
Contracts are legally enforceable agreements between two or more parties. This means that if one of the parties breaks the contract, the other party can take legal action against them. If you are considering buying or selling a business, a buy or sell agreement/contract is an important document that should set out the terms and conditions of the sale/purchase and is legally binding.
To find out more about TGB Lawyers’ expertise in negotiating and drafting contracts and agreements, have a look here.
Provision of written communication to purchaser (Form 2)
An important legal requirement that can be easily overlooked is the Form 2 – which is the Vendor’s Statement. This is a disclosure statement that must be provided by a vendor to a purchaser of a small business no later than 5 business days before the settlement date. There can be serious consequences to the Vendor if this step is missed.
Leasing of premises
All business transfers are different and unique. Sometimes, you may need to consider leasing new premises to run a business you have taken ownership of, or take on a new lease at existing premises. TGB Lawyers’ leasing team has significant experience in negotiating and drafting retail, industrial and commercial leases and can help you settle on a lease with terms that best suit your needs. Find out more about our leasing/property law experience here.