Buying or Selling a Business

Are you considering buying or starting a business? While it’s an exciting time full of promise, it’s important to realise the full extent of your commitment.

Buying a business is often a riskier decision than buying a property. A well-managed, profitable business leads to prosperity for your family.

You expect to generate a reasonable income from your business. To do so, you must do your due diligence.

Due diligence is when you make a comprehensive appraisal of the business. It’s important that you evaluate the business’s commercial potential and value of the business. You must identify all the risks and the future potential of the business.

Failing to do your due diligence may have severe financial consequences. This will impact you and your family.

There is a range of business issues you must take into account:

  • Business structure to set up the business, such as company, family or unit trust, partnership or sole proprietor.
  • Will you be employing staff to help run the business?
  • Will you have contracts with your customers or clients?
  • How will you deal with insurance, debt recovery?
  • Do you have finance in place?
  • What tax implications are there in the business structure you elect for your business?
  • Do you understand the fair-trading regulations?

Before you commit to a lease for your business, employ people or start work for clients, speak to Indus Lawyers to ensure that you are not putting yourself in legal jeopardy. Benefit from our years of experience helping other local business owners start and grow their business. Each transaction is unique therefore, you must seek advice to ensure you understand your obligations.

Often, starting a business means signing a commercial lease and making a commitment for a period of time. Commercial leases often have complex clauses that require explanation and for you to make long-term decisions. Do you fully know what you are signing up for in advance? Trying to change a lease later is often time-consuming and expensive. Retail leases are especially important as the location often determines a large portion of the goodwill of the business.

The principal of Indus Lawyers, Chandra Jamnadas, has thirty years of experience in assisting clients with the sale or purchase of their business. Based on his considerable experience, he is able to guide clients to avoid problems. If and when disputes arise, he will work with you to quickly resolve such disputes.

In all areas of business, ask our advice before you regret your decision.