Understanding your obligations when buying a business.
Buying a business is an exciting time.
You’re looking forward to being your own boss and exploring new possibilities. However buying a business can be daunting.
Due diligence is vital.You must consider a multitude of complex legal issues to ensure you understand the business that you are purchasing and be able to meet your obligations.
These include:
- The business structure to set up the business, such as company, trust
- partnership or sole proprietor?
- The Assets and Goodwill of the business?
- The current staff of the business and what legislation applies to them?
- What contractual arrangements are in place in relation to premises,
clients, suppliers or agents? - What leases, insurances and guarantees are required for the business
to continue trading? What fair trading obligations apply to the business? - What are the business’ current financial and tax obligations?
- Are there any outstanding financial liabilities or debts?
Completing your due diligence will assist you in determining the value of the
business and negotiating the best purchase price and terms.
Equally important is ensuring that the Contract reflects your negotiations and protects the business you’ve paid for, including inventory, clients, trade
restrictions, logos, intellectual property, and digital assets.
For peace of mind when buying your business,
speak with Zelden Solicitors.
Zelden Solicitors are experienced in advising buyers, owners and sellers of a business. They will help you get the information you need to protect your
interests and make the right decisions when buying your business.
Getting maximum value when you sell your business.
You’ve worked hard to build your business, so when it’s time to sell you want toensure the price reflects the true value of the business.
Preparing your business for sale is just as important as preparing
to buy a business.
You need to consider the:
- The assets and goodwill of the business
- Your Financial position
- The current arrangements in running the business from the premises
- Contractual obligations to clients, suppliers, and agents
- Your staff
- Any trading restrictions that may affect what you’re planning to do following the sale
- Tax obligations, liabilities or concessions
- The impact and timing of the business’ sale on your personal
financial position
Zelden Solicitors work with financial advisors, accountants and industry
professionals to:
- Help you prepare your business for sale
- Identify issues important to you in the sale of your business
- Negotiate and document the terms of sale of your business
- Maximize your business’ sale price
To protect your investment and optimize the sale of your business,
contact Zelden Solicitors.
A commercial or retail lease is an integral part of any business,
often an essential element in determining the success of any business.
But such Leases can be very complex and rather detailed.
It is important that you understand the Lease prior to entering into it.
Basic elements of a Lease that must be considered include:
- WHAT IS THE EXACT PREMISES BEING LEASED? – many people do not understand exactly what part of the property they are potentially leasing often causing the overpayment of rent.
- ARE THE DETAILS OF THE LESSEE (TENANT) CORRECT? – proper accounting advice is often required.
- WHO IS THE GUARANTOR AND WHAT ARE THEIR OBLIGATIONS?
Guarantors often do not realize the seriousness of their obligations. - DATE OF COMMENCEMENT OF THE LEASE
- DATE OF TERMINATION OF THE LEASE – And the rights of the Lessee (tenant) following the termination date.
- TERM OF THE LEASE INCLUDING ANY OPTION PERIOD – Most Leases contain strict time frames in respect of the exercise of any Option. Failure to stick to such time frames may result in a further Lease not being provided. But even when sticking to such time frames, risks exist.
- RENT AS AT THE DATE OF COMMENCEMENT OF THE LEASE AND RENT REVIES – As Leases are usually lengthy in term, it is important that the Lessee (tenant) understands how rent is calculated during the whole term of the Lease and upon the exercise of any option.
- CONTRIBUTIONS TO THE OUTGOINGS – Some Leases require the Lessee (tenant) to make contributions to the Outgoings of the premises. The amounts of such outgoings may change from year to year.
- THE PERMITED USE OF THE PREMISES – Is such permitted use in line with the nature of the Lessee’s (tenant’s) business? Has the Lessee (tenant) sought the relevant approvals in respect of conducting such business from the premises?
There are of course a multitude of other considerations to take note,
including but not limited to whether there are promotion levies to be paid, obligations of the Lessee (tenant) to maintain the premises and whether
the Lease contains any demolition and/or relocation clauses.
If you are a Landlord wishing to enter into a Lease, it is important for you to understand your rights under the legislation.
Whether as a tenant or Landlord, you need to understand your commercial rights and obligations contained in the Lease.
Bob Zelden of Zelden Solicitors has extensive experience assisting
landlords and tenants in drafting and reviewing commercial and retail
leases and resolving lease-related disputes.
Whether you are leasing a small shop or a large commercial or industrial
space, contact Bob Zelden of Zelden Solicitors for efficient and
professional leasing advice.