Buying and selling a business involves a legal process called conveyancing, which includes transferring the ownership of a business from the seller to the buyer. Here are the key steps involved in buying and selling a business throughout our conveyancing service:
- Initial agreement: The buyer and seller agree to the terms of the sale, including the price, payment terms, and any other conditions.
- Due diligence: The buyer carries out a thorough investigation of the business to ensure that they are aware of any issues or liabilities. This may include reviewing financial statements, contracts, leases, and licenses.
- Contract preparation: Once due diligence is complete, the buyer and seller engage solicitors to prepare a contract for sale. This contract will include all the details of the sale, including the purchase price, payment terms, and any warranties or guarantees.
- Contract review: The buyer's solicitor will review the contract to ensure that it is fair and protects the buyer's interests.
- Contract exchange: Once both parties are satisfied with the contract, it is signed and exchanged. At this point, a deposit is usually paid by the buyer.
- Completion: On the completion date, the balance of the purchase price is paid by the buyer, and ownership of the business is transferred from the seller to the buyer.
- Post-completion: After completion, the buyer's solicitor will ensure that all necessary registrations and filings are made, such as updating ownership details with Companies House and transferring any licenses or permits.
Overall, conveyancing is a complex and involved process, and it is essential to work with experienced solicitors to ensure that the process runs smoothly and that all legal requirements are met.
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Email: legal@themisco.com.au
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