Congratulations. You’re considering buying a business. Whether or not you have done this before it will be an exciting time.
In Queensland the contract you will sign is likely to be an REIQ business contract. It is a standard contract however it contains conditions which are not always appropriate and often conditions are varied by Special Conditions. Any existing special conditions need to be checked carefully. You may also want to include your own special conditions to ensure that your rights are protected.
Buyers should consider adding special conditions dealing with:
- due diligence investigations
- staff issues
- premises issues
- any third party agreements such as franchise agreements
The process of buying a business involves a number of elements. How many elements are applicable to your purchase will dependent upon the kind of business you are considering.
We can break down these processes into the following sections:
- A consideration of the entities involved. Will you use a company or trust?
- A consideration of the contract terms. Are the terms favourable or problematic?
- A consideration of any lease terms
- The process of due diligence
- Carrying out the contract terms
- Transfer of any lease
- Transfer of any licences
- Release of any encumbrances over any business assets
- A consideration of employees and their entitlements
For a full list of issues that you may need to consider in relation to your business contact us for a no obligation fixed fee and some helpful hints.