Buying A Business
With the right legal advice on your side, you will make the right decision
At Solicitor Direct we know buying a business can be both an exciting and scary prospect. You must be careful to consider the potential traps, pitfalls and also the prospects and advantages in advance of any negotiations. This is what we do for our clients and ensure that they walk into negotiations with the knowledge that can ensure they know information or have the questions.
We have many services including
- Business sales/ purchased
- Initial advice regarding a proposed lease
- Goodwill- What this is and options?
- Memorandum and Articles of companies involved
- Introduction of new contracts of employment and integration with existing employees
- Commercial property elements such as freehold/ leasehold titles, existing/ new leases, service charges and break clauses.
- Financial aspects of the business 0 such as warranties, financial status and investigation which may be required
Some Ideas/ Tips to Get you Started
Firstly, you need to check exactly what is being sold. Is it the business, or the assets? Is the equipment, such as the IT system, part of the deal? And what status is the business – for example, has it been registered with Companies House? It is also vital to establish who owns the business, as there may be more than one individual. If so, you would need their authorisation, and you would not be the sole legal owner. You must know precisely what you are getting yourself into, as these finer details are all things that will influence your decision, depending upon what you are looking for.
Secondly, ensure the business is financially viable. Ask to look at the profit and loss accounts, the original business plan and outstanding loans. Also get as much information as possible on the business’s outgoings, such as employee wages, existing contracts, taxes and charges. Then ask yourself: why is this business being sold? Is it a sinking ship? If the balance sheet simply doesn’t add up, it could end up being a drain on resources. Too many businesses have failed to make these enquiries in the past and have blindly acquired another business, only for it to lead to financial ruin.
Research is therefore vital, and the mainstay of your investigations will be your solicitor’s due diligence check. This will confirm all the material facts relating to the sale, provide a clear picture of how the business is performing and highlight any problems you need to protect yourself from. With this information at hand, you can guarantee that your purchase will be a worthwhile investment and not a financial failure.
Specialist Legal Advice
With the right legal advice on your side, you can rest assured that you will make the right decision. This will be incredibly exciting for you and your venture, as a successful purchase can have a phenomenal impact on your business, providing you with a ready-made organisation to take on as your own. This allows immediate expansion, as the customer base, systems and taskforce will already be in place – all you need to focus on is increasing your bottom line!
Contact Solicitor Direct
For more information about this article or any aspect of our commercial legal services, please call us on 01772 424999, email firstname.lastname@example.org or make an appointment to come and see us. We will be delighted to help you and there is no charge for initial advice.