Buying a business is exciting also, Choosing the right business to buy depends on your needs and lifestyle. An already established businesses can have many advantages. The process can be very time-consuming.
To make this process little easier RealWorld Business Brokers guideline may help you, but please be aware this is a guideline outlined Realworld Business Brokers company Policy. Purchasers should seek their own independent legal advice before following this guideline also visit consumer affairs website for more information on buying a business and due-diligence.
Few most common steps involved are:
- Searching Business online or short listing few categories.
- Making enquiry online or via phone to relevant business brokers or vendors.
- Sign NDA (Non-Disclosure Agreement).
- Making contact with business broker or agency.
- Request the information about business, this information will be provided at the discretion of vendor but this information is always confidential and does not include lot of details such as name of customers and suppliers and employees etc.
- If you like the overview then you can request an inspection to visit the business and meeting with vendor but always follow this through relevant business broker as business brokers are engaged by vendor in order to carry out this process and protect their privacy. No vendor would like to be contacted directly by purchasers when they have already engaged Business Broker, purchaser will be in breach of confidentiality agreement signed with business broker and may be liable for further damages (please read non-disclosure very carefully and seek legal advice if required but should understand that it’s in place to protect the privacy of vendor or seller of business)
- Further to inspection, if purchaser can submit expression of interest by submitting a letter of offer by mentioning price purchaser willing to pay for the business or heads of agreements subject conditions, such as lease transfer, finance, due diligence. (Please engage Solicitor and accountant who can help checking legal documents, business broker cannot provide any legal advice or accounting or finance advice as they are not qualified to do so.)
- Vendor has to provide copy of section 52 if the purchase price of the business is less than $450,000.00 before making an offer on the business.
- If vendor accept the offer, make fully refundable deposit 10% of purchase price or the amount specified on letter of offer into RealWorld Business Brokers Trust account and obtain a receipt.
- Vendor’s solicitor will prepare contract of sale which will be forwarded to purchaser and purchaser’s solicitor.
- Each party has to pay their own fees towards legal advice to their legal representative.
- As per contract and settlement dates always follow up with your solicitor and act in timely manner to get lease transfer done, cost of lease transfer is paid by vendor. If there is a cost of a new lease it is paid by the purchaser unless prior agreement.
- Stocktake is generally done a day before settlement.
- Pay all the balances after deposit on the settlement date as per advised by your solicitor/lawyer.
- The vendor must provide 30-day training free of charge after the settlement unless specified earlier.
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