Buying a business can be fraught with risk and possible loss, and as well as using the services of a professional accountant, you should ensure that you have suitable legal advice. A solicitor can draw up exclusivity agreements, heads of terms of agreement, and perform legal due diligence. They can also research and advise on the apportionment of purchase price, restrictive covenants, supply contracts, tax concerns, and employment and employee contracts. Essentially, the greatest benefit of using a solicitor to assist when buying a business is in the limit of risk.
The seller of a business is under no obligation to keep the details of a proposed purchase secret, unless you have a confidentiality agreement in place from the beginning. Without a confidentiality agreement, the seller can freely discuss the proposed purchase, including purchase price and other components of the deal, which could mean that you end up paying more.
Restrictive covenants may exist, and these may prevent a business from taking certain action or necessitate that they take specific actions. In either case, this could mean a loss of potential profit or an increase in expenditure that could greatly impact the potential of a business. Such covenants should be taken into account when calculating a fair price to pay for the business. In the worst case scenario, a restrictive covenant could prevent you from carrying out the type of business you want to, making the business purchase an expensive oversight.
Small business purchases tend to concentrate on the premises from where the business is run, but employees and employment contracts may be extremely important factors. Rules and regulations exist to protect the interests of employees, and even some uninterested parties may be protected under the terms of the Transfer of Undertakings for the Protection of Employees (TUPE) act.
Your business solicitor will be able to advise you on all matters regarding the proposed purchase of a business, its property, and all other obligations. They will help ensure that you know exactly what you are buying, what will be transferred, and whether any restrictions exist that might increase risk and reduce the value of the purchase from the point of view of your organisation.
What To Do Now?
No matter what your legal problem or at what stage it is, there is never a better time to call Haworth & Lees Solicitors than right now.
Our team of dedicated and highly professional Solicitors are always available for you. You will not have to deal with a paralegal or a legal case worker as your point of contact will be with a qualified and experienced Solicitor who will know the details and progress of your case.
Haworth & Lees Solicitors are a well established and highly respected firm of Solicitors in Tameside and Cheshire and offer that personal and local service that is always appreciated by our clients.
Getting in contact with Haworth & Lees could not be simpler. You can call on 0161 660 2923 or click here to send a confidential email.
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