Purchase & Sale of Businesses - Contracts of Sale

Unfortunately, most purchases and sales of business are not straightforward and there are many traps for the inexperienced or unwary.

Purchasing a Business

If you are purchasing a business, we can assist you with checking the contract of sale to ensure that it clearly defines:

  • Exactly what you are purchasing and what may be excluded
  • Whether due diligence issues have been addressed
  • Tenancy issues relating to the transfer of an existing lease or a new lease
  • Whether you are re-employing existing employees and proper adjustments of their entitlements
  • That any valuable IP is properly transferred
  • Any necessary conditions, for example in relation to finance

Selling Your Business

If you are selling a business, we can help with drafting the contract of sale to make sure that:

  • An adequate deposit is paid
  • Sufficient safeguards are in place regarding the payment of the balance of the purchase price, particularly if the full balance is not payable on settlement
  • Proper documentation has been provided if the purchase price is under $350,000
  • The purchaser has not been misled in any way, which could result in cancellation of the contract

The control of a business is sometimes also transferred by selling the shareholding in a company, or units in a unit trust which owns the business. We are experienced with such transactions and can assist in this area

Conveniently located in Melbourne’s Eastern Suburbs, call today for advice.