Buying a business in Australia is a highly-complex process which, depending on the type of business being purchased, may involve a number of intricate steps to successfully complete. Seeking the support of an Australian business lawyer will help you navigate each step of the transaction to maximise your benefit and minimise potential risks.
When should you consult an Australian business lawyer for buying a business?
It is advantageous to seek legal advice early on in the business purchasing process as this minimises the chance of entering into an agreement that you do not understand, or that does not adequately protect your interests.
Why should you consult an Australian business lawyer when buying a business?
There are a number of pitfalls which buyers may fall into when purchasing an Australian business, and seeking legal advice and support throughout the transaction journey helps to mitigate these risks. One such pitfall is that there are different kinds of business sales which can be entered into, and it can often be difficult for ‘non-legal people’ to ascertain exactly what is being sold in the transaction. For example, is the business entity being sold or just the business assets.
A suitably qualified and experienced Australian business lawyer will be able to clearly identify the kind of sale that is at hand, and explain to you the best direction to protect your interests. Without a deep understanding of each step of the process, you are likely to leave yourself open to liability. Engaging an Australian business lawyer reduces this risk as their expertise allows them to anticipate issues that commonly occur in certain transactions and safeguard you against these before they occur. For example, an Australian business lawyer can ensure that appropriate searches have been undertaken to confirm the accuracy of the vendor’s claims or they may assist in negotiating terms of the sale agreement which protect your interests.
What can a lawyer help you with when buying a business?
Engaging an Australian business lawyer to assist in buying a business will greatly increase the chance of a successful transaction. A lawyer can assist with the following tasks:
- Prepare a term sheet
- Identify exactly what is being purchased
- Identify the best legal structure for purchasing
- Assist you to conduct searches and due diligence
- Review the sale of business agreement prepared by the vendor
- Explain the terms of the sale of business agreement so that you are in a position to wholly understand the sale
- Prepare relevant documentation
- Assist with relevant transfers (transfer of trademarks, for example)
- Support you in negotiations to ensure your concerns are addressed and interests protected
- Secure and finalise the transaction
Ultimately, seeking legal advice when purchasing a business will protect you from liability and ensure the transaction is as beneficial for you as possible.
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