High-value transaction of buying or selling business requires you to be careful in every step you take. Though your case might be complicated and required customized service and your conveyancing lawyers and solicitors might follow up with single detail of the process, make sure of lowest risk. It’s better that you can get grasp of the following basic issues when buying or selling a business:
- GST – is the sale a going concern?
- Due Diligence – has this been allowed for in the contract. Get the right advice from you accountant, legal and financial advisor during this time.
- Lease of premises – is there an assignment, transfer or preparation of a new lease?
- Stocktake – who will undertake this and when?
- Restraint of trade– is this required?
- Staff – are they continuing employment? What are their leave entitlements including annual and long service leave.
- What are the WorkCover or superannuation requirements?
- Insurance – what does the business need?
- Compliance – what are the compliance issues at a local, state, and federal government level?
- Business name – how will the transfer of the business name be handled?
- Transfer of phone numbers or the web site?
- Licence transfers – are there licenses required to run the business such as liquor licences, council permits or motor vehicle licences?
- Finance –are you taking out a business loan, borrowing against other property, debenture, bill of sale?
- Will the vendor provide assistance after settlement?
- As part of the 2015-16 State Budget stamp duty has been abolished on business transfer instruments executed on or after 18 June 2015.
This checklist is just the start and as each business transaction is unique it is best to get the right advice early.