Our solicitors are experienced in acting in the sale of businesses of varying size and complexity, across a range of industries. We understand the different factors that need to be considered in any transaction. We work closely with all parties, including commercial real estate agents, accountants and financial planners, to ensure you benefit from holistic advice.
We can assist in the sale of businesses by drafting the Contract, including advising on the information and documentation legally required to be included in the Contract, and suggesting which special conditions should be included.
Every business is different. Some business sales are straightforward, and some business sales are complicated. There are plenty of issues to be considered to ensure that all aspects of the business are dealt with (read our blog about selling a business here).
The main steps in a sale of a business are:
- Preliminary negotiations, pre-exchange searches, negotiation of special conditions, agreements signed.
- Exchange of contracts takes place at the offices of the vendor’s solicitors, where a deposit of 10% of the purchase price is usually paid. Contracts are now legally binding.
- The purchaser’s solicitor sends to the vendor’s solicitor “requisitions on title”, which are a list of questions sent to the vendor’s solicitor. If the answers turn out to be false or misleading, these will provide protection to the purchaser.
- After exchange, the vendor will generally have a number of obligations to fulfil, as stated in the contract for sale. These include: executing the necessary documents to transfer title, discharging a mortgage and acquiring a lessor’s consent to a transfer of lease.
- The contract for sale will state a completion date, when settlement will occur. Settlement generally occurs at a place nominated by the vendor. The solicitors for the buyer and the seller must have all the relevant documents signed and the appropriate cheques.
Selling a business? Let’s talk.View our blogs for useful information regarding selling a business.