Buying a business can be a daunting prospect. With a variety of factors to consider and numerous risks to weigh up, the processes involved in buying a business in NSW can be confusing.
As a prospective buyer, when looking at a business listed for sale, there are some important factors to consider:
(a) the details of the Sale Agreement (including protection / restraint clauses, the assets which are included and those which are not, the payment of any outstanding liabilities and the arrangements for the lease of the business premises);
(b) business operation and sales performance (including profits, industry trends, relationships with suppliers, customer base, stock and future prospects);
(c) business costs (including fixed and variable costs, depreciation and industry sector averages);
(d) registrations required to operate the business (Business Name, Tax File Number, Australian Business Number, Goods and Services Tax, Pay As You Go and other state based registrations); and
(e) other legal and compliance issues (such as conducting due diligence, compliance with the Privacy Act, warranty obligations and insurance requirements).
Our team at WMD Law can provide you with guidance on the processes involved in purchasing a business. Contact us at wmd@wmdlaw.com.au or 9525 8688.
