Take the stress out of selling your business.

While it is not a legal requirement, having a lawyer involved in the business sale process is highly recommended. Selling a business can be complex, involving numerous legal documents, regulatory requirements, and financial considerations. A lawyer can:

• Ensure Compliance: Make sure the sale complies with all relevant laws and regulations, reducing the risk of legal issues after the sale.
• Draft and Review Documents: Prepare and review contracts, agreements, and other legal documents to ensure they accurately reflect the terms of the sale and protect your interests.
• Identify Risks: Highlight potential risks, such as undisclosed liabilities, that may affect the value of the business or lead to future disputes.
• Facilitate Smooth Negotiations: Assist in negotiations to help resolve any disagreements or concerns between the buyer and seller.

Engaging a lawyer from the beginning can save time, reduce stress, and help you avoid costly legal problems down the line. Sprintlaw’s Business Sale Package includes legal support throughout the sale process to ensure everything goes smoothly.

There are several common issues that can arise during a business sale, which is why it is crucial to have a comprehensive agreement and legal support. Some key issues to watch out for include:

• Unclear Asset Lists: Failing to specify which assets are being sold can lead to disputes. The agreement should clearly list all included assets, such as inventory, equipment, and intellectual property.
• Undisclosed Liabilities: If the seller has outstanding debts or other liabilities that are not disclosed, the buyer may inherit these problems. Due diligence can help uncover any hidden financial risks.
• Employee Arrangements: It’s important to clarify what will happen to existing employees after the sale. Will they be retained under the same terms, or will there be new employment agreements?
• Incomplete Transfer of Licences and Contracts: Failing to transfer necessary licences, permits, or contracts can disrupt business operations. It’s essential to ensure all required approvals and transfers are completed before finalising the sale.
• Confidentiality Issues: Sensitive business information should be protected throughout the sale process. Confidentiality clauses can prevent either party from disclosing or misusing proprietary information.

Addressing these issues in the Business Sale Agreement and seeking legal advice can help ensure a smooth transaction and protect both parties from future disputes.

Due diligence is the process of thoroughly investigating and verifying the financial, legal, and operational aspects of a business before completing a sale. This step is crucial because it helps the buyer assess the true value of the business, identify potential risks, and make an informed decision about the purchase.

During due diligence, the buyer may review:

• Financial records: To verify revenue, profit margins, and liabilities.
• Legal documents: Including contracts, leases, and intellectual property rights.
• Operational aspects: Such as employee agreements, supplier contracts, and customer relationships.
• Compliance issues: Ensuring the business meets all regulatory requirements.

Completing due diligence is essential because it allows both parties to address any issues or concerns before finalising the sale, reducing the risk of disputes and unexpected liabilities after the transaction.

Selling your business can be a complex process, but our experienced lawyers are here to guide you every step of the way. Here’s how we can assist during each phase of the sale:

1. Before You Sign the Contract

• Preparing a Business Sale Agreement: We’ll draft or review the agreement to ensure all key terms are covered and your interests are protected.
• Conducting Relevant Searches: To prevent any surprises, we’ll conduct essential searches, including:
  • Company Search: Verify the legal status and details of the company.
  • GST Registration Check: Confirm the business is appropriately registered for GST.
  • Business Name Search: Ensure the business name is legally owned and can be transferred.
  • Trade Marks Search: Verify the status of any trade marks associated with the business.
  • PPSR Search: Check for any existing security interests over the business assets.

2. Post-Signing / Pre-Settlement

• Guidance on Next Steps: We’ll provide clear advice on any steps you need to complete before settlement.
• Communication with the Purchaser’s Solicitor: Our team will draft a letter to the buyer’s solicitor, outlining their obligations to ensure a smooth transition.
• Preparing Transfer Documents: We’ll assist with or review key documents, including:
  • Deed of Transfer of Lease: Facilitating the transfer of any leases to the new owner.
  • Settlement Statement: Preparing a detailed breakdown of financials for settlement.
  • ASIC Business Name Transfer Key: Obtaining the key required for transferring the business name.
• Scheduling Settlement: We’ll coordinate with all parties to arrange a smooth and efficient settlement process.

3. Post-Settlement

• Ongoing Advice and Support: Our assistance doesn’t end at settlement. We’ll advise you on any post-settlement steps you should take to ensure all legal requirements are fulfilled and the transfer is complete.

At Sprintlaw, we understand that selling a business involves many moving parts, and our goal is to simplify the process for you. Contact us to learn more about how we can support your business sale.

Our fixed-fee Sale of Business packages start at $3900 + GST. This includes assistance through all stages of selling your business assets, online legal assistance and phone consultations with an expert Sprintlaw lawyer.