- Sale or Purchase of a Business is not easy or simple
- Do not buy a business without having a contract in place
- If you are purchasing a business, do not hand over any funds to the vendor before talking to your conveyancer. The deposit and settlement monies should be dealt with responsibly and should not be released to the vendor until settlement (unless otherwise agreed)
- Talk to your conveyancer before you ask the Landlord for consent to assign a Lease. If you do so before the required documents have been prepared you could invalidate your protection under the Retail and Commercial Leases Act.
- The Form 2 consists of more than just the Accountant’s section. Your conveyancer can assist you with the preparation of the rest of the document.
- If you are a vendor you should always serve a Form 2 if the sale price is less than $300,000.00. It is always best to disclose details about the business than risk legal action later for non-disclosure
- Be aware of your liabilities regarding staff entitlements. There have been occasions when the amount payable to the purchaser for staff entitlements exceeds the sale price of the business
Although you might have a strong support network from conveyancers and professional lawyers, there
are many aspects that you should be aware of to avoid unexpected pitfalls during the
complicated conveyancing process.