Sale of Business Lawyer

Our office is conveniently located in Sydney: 801, Level 8/100 William St, Woolloomooloo NSW 2011 (view in Google Maps).

Sale of business lawyer: how we help

At Progressive Legal, our commercial lawyers help you navigate and alleviate the complexities that often arise during business sale transactions.

As a business owner, the prospect of selling your venture can be both exhilarating and daunting. Ambiguities in legal intricacies, potential risks, and negotiations can pose substantial challenges. This is where we step in, bridging the gap between uncertainty and confidence. Our tailored legal strategies not only protect your interests but also optimise the sale process, ensuring a more seamless transition to your next endeavor. 

Request our advice below and get in touch with our team for expert guidance.

Article – Navigating the Sale of Your Business: Essential Considerations

If you’re in the process of selling your business, or even just contemplating the idea, it’s crucial to recognise the array of legal matters associated with this significant transaction.  

At Progressive Legal, we emphasise the importance of seeking a sale of business lawyer at an early stage in the process.  

Once agreements and contracts are in place, manoeuvring negotiations becomes substantially more complex. Here’s what you need to know about the sale of a business.

Getting your business ready for sale 

There’s a common misconception that ‘selling your business’ means just flicking a switch when you’re ready to sell. You tell someone you’re going to sell it, you put it on the market and someone buys it. 

In reality, this almost never actually happens because most people don’t prepare their business for sale. There are three things you need to have a “saleable” business and it’s essential for entrepreneurs to make sure they’re building a business that ticks these off when it’s time to sell.  

1. Proprietary assets

Does your business do something that it is known for? Has it developed something that is hard to compete with? If so, you have a proprietary asset and a proprietary advantage – an extremely attractive type of asset to a buyer.  

This could be something like a brand, a system, products and intellectual property that you own the rights to. By having proprietary assets you’re dramatically increasing its value, increasing its appeal and value to buyers.

2. A core team

If you want to sell your business, it needs to have a loyal team. This doesn’t mean a team that’s loyal to the founder of the business but a team that’s loyal to the business itself. 

This is because you’ll need a core team to stick around and run the business after you sell it and the buyer will be looking for exactly this. A general rule of thumb is that a business needs to have 30-40 people in a team before a buyer considers it is no longer founder-dependent. There are always exceptions to that rule, especially in relation to products and services that may not rely on the founder so much on a daily basis. 

3. Predictable revenue streams

A buyer needs to be able to forecast the future of the business before you can sell it. This forecast needs to show that the business will continuously be able to make money. Buyers will then ask the question: ‘how do we make this business perform better?’.

The legalities to consider when selling your business

Defining the scope of the sale

Whether you’re the seller or the buyer, defining the specifics of what’s being sold is paramount.  

This includes identifying the parties involved and clearly delineating the assets or elements of the business that are changing hands.  

These assets could range from physical equipment to intangible assets like the business name or brand. 

Understanding permitted uses and approvals

Before finalising any sale, it’s essential to establish the permissible uses of the premises where the business operates. This can involve zoning regulations and relevant Council approvals.  

Additionally, be vigilant about any restraints of trade that may impact the business’s operations under new ownership. 

Determining the price

Setting the price requires meticulous consideration. This process encompasses determining the value of inventory included in the sale, assessing the worth of goodwill and equipment, and outlining any tax implications.  

In some instances, enlisting the services of an independent valuer may be necessary to ascertain the accurate value of the items involved in the sale. 

Insight into deposits

In many cases, sellers request a deposit from the buyer prior to the finalisation of the sale. Understanding the terms and conditions related to this deposit is crucial.  

Clarify whether the seller has the right to utilise the deposit funds before the sale concludes, or if the deposit is held in a trust until the transaction is completed. 

Commercial lease agreements

The sale of a business often involves lease agreements, especially if the business operates within a rented space. For instance, if you’re selling a business along with its equipment, but the physical space is owned by a landlord, certain legalities need to be addressed.  

Seeking legal advice to review the lease’s terms and conditions is highly recommended to ensure both parties’ interests are safeguarded. 

Clarity in legal documentation

Every step of the sale process should be supported by clear, explicit legal documentation that is mutually understood by all parties involved. It is crucial not to sign anything that you do not understand as you could be legally bound to an agreement that does not protect your interests.  

It’s prudent to seek legal advice before any contracts are drafted or signed. This ensures that the agreements align with the parties’ intentions and protect their respective rights. 

Understanding the importance of a sale of business lawyer

Selling a business involves more than just handing over the keys. It’s a multifaceted process that demands thorough legal insight to safeguard your investments, rights, and future.  

A sale of business lawyer specialises in the intricacies of business transactions and provides invaluable assistance from the beginning to the conclusion of the sale.  

Here are reasons why partnering with a skilled lawyer is essential:

1. Navigating legal complexities

The sale of a business entails various legal intricacies that can be overwhelming for someone without the right expertise.  

A sale of business lawyer is well-versed in laws and regulations specific to Australia, ensuring all necessary permits, licenses, and compliance requirements are in order.  

This expertise prevents legal hurdles down the line that could potentially derail the sale process.

2. Tailored contracts and agreements

Generic templates simply won’t suffice when it comes to the sale of your unique business. A sale of business lawyer drafts and reviews contracts and agreements tailored to your specific circumstances.  

This includes terms of sale, transfer of assets, employee arrangements, and non-compete clauses, among others.  

Having legally sound contracts in place minimises the risk of disputes and protects your interests.

3. Due diligence and financial clarity

Buyers conduct thorough due diligence before acquiring a business. A sale of business lawyer assists in compiling all necessary financial and legal documents, ensuring transparency and accuracy.  

This step not only builds buyer confidence but also facilitates a smoother negotiation process.

4. Negotiation expertise

Negotiating the terms of a business sale is a delicate art that requires finesse and strategic thinking. With a sale of business lawyer by your side, you can leverage their negotiation expertise to secure a favourable deal.  

Their insights into market trends and legal implications allow you to make informed decisions during the negotiation process.

5. Mitigating risks

Every business sale carries inherent risks – from potential liabilities to undisclosed issues that could emerge post-sale.  

A sale of business lawyer identifies and addresses these risks, safeguarding your financial future. Their proactive approach minimises the chances of unpleasant surprises down the road.

6. Transition support

A successful business sale involves a seamless transition of ownership. A sale of business lawyer ensures that all necessary legal steps are taken to facilitate this transition, from notifying government agencies to transferring licenses and registrations.  

This support minimises disruptions and sets the stage for a smooth handover. 

Key takeaways

Selling your business is a significant milestone, and having a seasoned sale of business lawyer on your side can make all the difference.  

From navigating complex legalities to drafting tailored agreements and providing strategic advice, their role is pivotal in ensuring a successful sale that protects your interests. 

At Progressive Legal, we specialise in guiding business owners through the intricacies of selling their businesses. Our experienced sale of business lawyers bring a wealth of knowledge to the table, ensuring your sale process is efficient, transparent, and advantageous.  

If you’re ready to embark on this transformative journey, contact us today for expert legal support. Your business deserves nothing less.