The purchase of a business generally involves the transfer of the various items of property used in the conduct of the business such as goodwill, plant & equipment and stock in trade.
There are many advantages in buying an existing business, but as with all major financial decisions there are some disadvantages to be considered. To ensure that the disadvantages are minimised, it is recommended that a prospective buyer undertake a due diligence audit with regards to the business operation.
Checklist for the purchase of a Business:
- Decide whether the type and size of the business fits with your needs, skills and experience, financial capacity and future plans.
- Find out why the business is for sale.
- Check the operations of the business including sales, costs, profits and assets. It is advisable to seek independent financial advice from your accountant when reviewing the financial records of the business being considered.
- Investigate the WorkCover or Workers Compensation claim record of the business.
- Research current and potential competitors. It may be prudent to consider placing restrictions in the sale contract on the future trading activities of the vendor where this is in direct competition with the business you are intending to purchase.
- Inspect contracts for current and future work with customers.
- Review the draft purchase agreement with your solicitor and advise them to carry out all required searches.
In addition there are also various Federal and State requirements with regard to the Purchase of a Business that you may need specific advice on as it pertains to your individual circumstances.
The team at Quinns can help you navigate the myriad of legislation, contracts and any other issues that pertain to the purchase of a business. We can also conduct a due diligence on your behalf to audit the business prior to purchase and offer advice on all matters in relation to Employment Laws, Work Cover and Workers Compensation, Trade Practices, Intellectual Property and other Business Legal and Accounting matters.
Quinns can assist you with the purchase of a business. If you would like to make an appointment or you would like to find out more information, please contact us online or call 02 9223 9166.