Small Business Law

Sales of Business – The Stages Involved

In the sale of any business, getting the deal ‘done’ is often the overriding goal of each party. However, how easily you get to this stage, and indeed whether you get to this stage at all, depends on the work you do before the sale process has even started.

(1) BEFORE YOU START

Whether you are a vendor or a purchaser, there a few, absolutely fundamental questions that you must consider:

• What are you selling/buying?
• Why are you selling/buying?
• Who are you selling to / buying from?

While the answers may seem obvious, we have often seen potentially successful transactions transform into a significant waste of time and resources, simply due a failure to grapple with these fundamental issues.

In particular, the way you answer these questions will affect the following:

1. The structure of the transaction
2. Whether the business can be sold
3. The number of potential buyers
4. Whether you will need to pay GST.
5. Other tax liabilities
6. The scope of any due diligence required

At Rosendorff Lawyers, we can assist you in answering these often complex questions. Most importantly, we can help you to avoid the expensive pitfalls that exist for those ignore these critical questions.

(2) THE TRANSACTION

Taking the time to consider the questions in (1) will, almost inevitably, make the sale or purchase of your business far smoother.

Even so, unforeseen events can, and will, arise.

In our experience, remaining focused on your commercial goals, and being realistic about what you can achieve in the transaction are critical in navigating such events. However, this must be complemented by the knowledge and experience of your legal advisor.

Rosendorff Lawyers is proud to have a credible and trusted small business lawyers. We have collectively completed hundreds of business sales and acquisitions, ranging from small start-up business to large, complex corporate groups, across a variety of industries. We believe this experience can make a fundamental difference to what may be one of the most important transactions you ever undertake.

(3) POST COMPLETION

Thorough preparation and effective execution are often the most important elements in achieving a successful business sale or acquisition. However, it is not uncommon for surprises to emerge well after contracts have been exchanged, and money has changed hands.

In such circumstances, it is critical that you act quickly in obtaining legal advice. Delay can often lead to significant financial loss, regardless of any enduring rights that you may have.

At Rosendorff Lawyers, we have a proven track record in acting for both buyers and sellers in complex, post completion matters.

Finally, we know that cost-effective legal representation is critical in achieving a successful commercial outcome. We believe our wealth of experience and market-beating rates allow us to provide some of the most cost-effective legal services available. However, we can also provide fixed fee quotes for many transactions. This means fewer surprises and a better financial outcome for both you and your business.