By Luke Mitchell, Dooley & Associates Solicitors
The opportunity to purchase an established business promises a future of freedom and financial gain, however the ultimate decision is not one to be taken lightly.
You’ll need to decide whether the move is the right one in the first place – then have the confidence and know-how to undertake due diligence, negotiate the deal and follow through with the transaction. The same goes for those looking to sell their business and move onto their next challenge.
Manage these factors poorly and you can risk what you’ve worked so hard to achieve.
Get them right and you’ll enjoy immense personal reward and satisfaction for your hard work.
Before you sign on the dotted line, it’s critically important that you really understand the sale and purchase process and ensure that you avoid the most common potential pitfalls.
Snapshot Of A Typical Sale/Purchase Process
Information Memorandum issued;
Confidentiality Agreement/NDA executed;
Due diligence and disclosure documents;
Negotiation of sale and purchase documentation;
Execute sale/purchase documentation;
Satisfaction of conditions precedent, preparation for settlement, including items such as
offers of employment and settlement adjustments;
- Attend to ASIC and other regulatory filings;
Calculate any relevant post completion price adjustments;
Integration into the business.
We suggest that you start considering and addressing these issues as early on as possible, so that you are aware of all issues from the outset. This will help to ensure that you’re making a fully informed decision and allow the process to flow as smoothly as possible, should you proceed with the transaction.
Dooley & Associates Solicitors ebook Buying & Selling Businesses covers all of the most important issues that should be considered before your sign on the dotted line, from understanding the sale and purchase process to avoiding the most common potential pitfalls.
For further clarification on any of the information we provide, simply contact the team at Dooley & Associates at any time.
Reproduced with the permission of Dooley & Associates Solicitors. This article by Luke Mitchell was originally published at www.dooley.com.au/blog
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