When you are considering buying a business, you want to have as much information as possible about the business you are buying. Having this information allows you to make a proper assessment of the value of the business and any risks associated with buying it.
We recommend you conduct a thorough due diligence assessment of the business before you purchase it. This involves an in-depth consideration of:
- Its operations;
- Its financial performance;
- Legal compliance;
- Tax compliance;
- Customer contracts;
- Intellectual property; and
This information is highly sensitive and confidential, and a seller is likely to want you to enter into a confidentiality agreement before they will give you access to it.
We also recommend that you obtain an independent valuation of the business, and obtain tax advice including stamp duty ramifications of a purchase.
Once you have decided to purchase the business, you will need the seller.
Whether you are the seller or the purchaser, your interests are best protected with a properly drafted and negotiated Sale and Purchase Agreement to cover all of your agreement with the other party.
At MSM Legal, we can assist you every step of the way.