Historically the bulk of people in Canberra were employed in the Public Sector. Over time more and more people are starting their own business, or buying an established business. Franchises can be popular but not without their challenges.
Operating a business can be an exciting, challenging, scary, experience. We can help with making sure the legal issues are taken care of.
Sometime after meeting with us and their Accountant clients have walked away from a potential purchase. They went on to buy another business but potentially saved themselves a lot of money and a lot of heartache. It is better to make the decision not to proceed earlier rather than later.
Clients need to think about the correct structure. Sole Trader, Partnership, Trust, or Company all have their upside and downside. It can be a good idea to get the correct structure in place at the start and plan for growth rather than try to change later.
We need to review the Sale of Business Contract, look over the Lease, and make sure any Franchise Agreement is reasonable. There can be a host of issues to consider such as whether stock is included or extra. Ensure phone numbers, business name, and web pages are transferred. What is happening with employees? Who pays for accrued leave entitlements? Who are the key suppliers? Is the Accountant happy with the financial records?
One potential expensive trap is that if a Landlord is assigning or transferring an existing Lease they can charge for legal costs. The Seller of the Business may try and pass those costs on to the Buyer. If a Landlord provides a new Lease, rather than an assignment, then they can’t pass on their legal costs. This one difference can save a lot of money.
It is an exciting time when buying a business and we have the experience to help.
We invite you to contact us to discuss buying a Business.
This is general information only and should not be relied upon as legal advice.
Published 6 November 2017.