Buying a business?
Once you’ve found a business that you are interested in buying you need to let the agent know. We will contact the sellers solicitors and request the Asset Purchase Agreement if you are buying Goodwill and Assets. If you are buying a Limited Company it is a purchase of shares and your solicitor will need to draft the Share Purchase Agreement.
If the offer is accepted, the buyer’s legal team will conduct due diligence to make sure there are no unforeseen liabilities. If serious concerns are raised you could be advised to walk away from the deal. Due diligence can be a lengthy process, but it is essential. This is because English law does not provide much protection over such purchases.
There may be practical steps that you haven’t considered such as integrating new software into pre-existing frameworks, staff, the transference of rights, and accounting. But, after the sale has been completed your solicitors can help you structure your business as you may now be responsible for staff and their rights such as pensions and other benefits.
As the buyer, you will want the seller to give you assurances that the information the seller is relying on is correct. On some occasions, covenants may be given by the seller stating that they will not run a similar business within a particular geographical area. Your solicitor can advise you in relation to this.
Once we are satisfied with the due diligence inquiries we can agree on the sale contract and complete.
Talk to us for any queries regarding buying a business for a no obligation chat