Whether you have chosen to sell your business privately or in fact are using a broker, in either can it is strongly recommended that you engage a solicitor or conveyancer to handle the legal documentation required. This gives you peace of mind that everything has been covered correctly.
Solicitors should check that the contract doesn’t include any false statements, and covers all aspects of the sale, including:
- all the relevant assets that are being transferred, including property, equipment, fixtures, fittings, stock, and any rights to use any names
- all the relevant liabilities, including creditors (people or businesses that your business owes money to) and the lease of the business premises
- responsibility for employees and employee entitlements, including whether employees are to be transferred with the sale (if the new owner isn’t an ‘associated entity’ – related to the old business in some way – they don’t have to recognise some entitlements)
- Statements about what will happen if any issues arise (for example, the buyer decides not to proceed; inaccuracies are discovered in the contract, etc.)
- Any restrictions on trading in your profession after the sale (to prevent you from competing directly against the new owner).
Again, it is highly recommended that you have a solicitor/conveyancer prepare the document including the contract of sale.
