At Summers Legal we have a wealth of experience in providing practical legal services for business sales and purchases in Perth and across Western Australia.
Acquiring an existing business or selling a business can be a complex and time-intensive process. It is imperative to have a clear understanding of the transaction and the legal aspects involved.
We collaborate with our clients and, if necessary, business brokers to manage all legal aspects of a business sale or business purchase, from business sale contract negotiation to business settlement.
Whether you are looking to acquire a new business or you are an established business owner seeking to sell, our business lawyers will work closely with you to ensure that your interests are protected, and your transaction is executed smoothly and efficiently.
Our commercial lawyers can provide assistance with a range of services throughout the business purchase and sale process including:
At Summers Legal we offer practical legal help for those buying or selling a business. With knowledgeable commercial lawyers, we focus on making the business transaction process efficient and straightforward. Whether it is a proposed sale or a purchase, we are here to assist with all matters relating to your business sale or purchase. For reliable support in your business transaction, contact us at (08) 9420 8222.
Buying a business in Western Australia is a complex process that requires careful planning and consideration. Here’s a guide that outlines the steps you should follow:
Before making any commitment, critically assess whether the business aligns with your goals, skills, and interests. Consider the industry, the location, and the scale of the business.
Conduct thorough due diligence. This involves analysing financial statements, contracts, employee records, and other relevant documents. Consult with professionals such as business purchase lawyers, accountants and business brokers for a comprehensive analysis of the business’ health and viability.
If you are satisfied with the evaluation and decide to proceed, negotiate the terms and conditions of the sale. Once both parties agree, sign a Business Sale Agreement. This contract should detail the terms of the sale, including assets included, liabilities assumed, and the total purchase price. It is highly recommended to have a business sales lawyer review any business contracts before signing.
During the pre-settlement period, it’s crucial to finalise financing arrangements and carry on with due diligence. This stage may also encompass securing necessary licenses, permits, or consents, and confirming compliance with pertinent regulations. Furthermore, this is the time to notify the relevant government authorities about the change in business ownership, which includes transferring the business name. To ensure a smooth transition, it’s important to coordinate any essential training or handover procedures.
On the settlement day, both parties fulfil the conditions outlined in the Business Sale Agreement. As the buyer, you will pay the agreed purchase price, and the seller will hand over the business assets, keys, and any other relevant items that the business relies on to function. Make sure all the documents are in order and have been properly executed by a business settlement agent.
After the settlement is complete, the business is officially yours. Take control of the operations and assets. Notify suppliers, customers, and other stakeholders of the change in ownership and if there is a change in the business name. Review and possibly renegotiate contracts with vendors or employees as needed. Focus on establishing good relationships with employees, clients, and suppliers.
Keep in mind that buying a business is a significant investment and can be a life-changing decision. Engaging the services of experienced professionals, such as lawyers, accountants, a business settlement agent, and business brokers, can be invaluable throughout the whole business buying process.
When buying or selling a business in Western Australia, there are numerous considerations to keep in mind. These considerations can have a significant impact on the success and smoothness of the transaction:
As a sole trader, an individual is solely responsible for managing the business. This structure is generally the simplest and involves less red tape compared to more complex structures. However, it’s critical to consider that as a sole trader, you are personally liable for every aspect of the business, including debts.
In a partnership, two or more individuals or entities collaborate to run a business. This structure requires a partnership agreement that clearly outlines each partner’s roles, responsibilities, and how profits and losses are to be shared.
Opting for a limited liability company structure, often referred to as a company, means that the business is a separate legal entity. This structure can offer protection to the owners as their personal assets are typically not at risk for business debts.
Similar to a partnership, a joint venture is usually formed for a specific business project. It’s a structure where the parties agree to pool their resources for the purpose of accomplishing a specific task or business goal. A joint venture can be complex, so it is essential to have clear agreements in place.
What Is the Difference Between a Lawyer and a Business Settlement Agent?
In the purchase and sale of businesses, a lawyer typically provides comprehensive legal advice on a variety of aspects, including business structure, tax implications, and legal compliance. They are also instrumental in drafting and negotiating contracts such as business sale agreements, to protect their client’s interests.
Furthermore, they can assist in managing due diligence processes and handling disputes or issues that may arise during the transaction. On the other hand, a business settlement agent primarily focuses on the administrative aspects of the transaction.
They ensure that all necessary documents are properly prepared, lodged, and that the settlement process proceeds according to schedule. While they handle the procedural elements, they may not provide the in-depth legal advice and contract negotiation skills that a lawyer offers.
What Is Involved in Business Due Diligence?
Business due diligence in Western Australia involves a comprehensive evaluation of a business before a purchase or investment. It entails:
Engaging professionals such as accountants, business lawyers, other legal firms, and business advisors is advisable for an effective due diligence process.
How Long Does Business Settlement Take In Western Australia?
In Western Australia, the settlement process for selling a business is a complex process that typically takes between 30 to 90 days. The timeline can fluctuate based on factors such as the intricacy of the business purchase, the conditions set in the Sale of Business Agreement, and the expediency of completing due diligence and other tasks prior to the settlement date.
Moreover, securing finance approval for the purchase price and obtaining requisite clearances from regulatory bodies are external factors that can also influence the duration of the settlement process.
Engaging a commercial law firm can facilitate a smooth transaction and expedite the sale process. At Summers Legal, our commercial lawyers can pre-emptively address potential issues, provide practical advice, and efficiently manage the entire process. This legal assistance ensures that all aspects of the transaction are handled professionally, paving the way for a seamless and timely settlement.
Expert commercial lawyers who we have been using for nearly 3 decades. Highly recommend them for expertise in all commercial and property matters.
First-class Legal Service from Paul Summers. Highly qualified and experienced in Law relating to my business. I was well equipped with knowledge from my consultation. This Law firm is one you can trust on every level. I will recommend and use it again
If only all people were so helpful the world would be a better place. Excellent is the word to describe their work.
Paul Summers and his team are the best legal team I know in Perth. The very best commercial outcome.
I have personally used Paul Summers and Summerslegal to act on behalf of a number of companies that I have been involved with both in the private and public sectors over the last 20 years. His advice and the advice of his firm has always been excellent and I can highly recommend his services and often do!
After a lengthy and drawn out business purchase, I’m so glad to have come across Paul Summers. Despite never having met (located interstate but needing a WA based solicitor) Paul treated us like long time clients and looked after us right throughout. We are so grateful – thank you!
Absolutely blown away by Paul Summers. Despite being new to property development and not knowing a lot about Shareholders/Joint venture Agreements etc he took me seriously and invested his time to help and guide me in the right direction. Other lawyers, I called just put me in the too hard basket. Definitely recommend his service.
A professional, timely and well-executed job with my legal matter. Thanks, Paul!
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