Following on from our previous blog:

Employees – The Seller must provide you with a full list of staff and employment contracts. Furthermore assurance must be made by your Conveyancing Practitioner that all PAYE tax and any other payments due to the IRD are paid at settlement inclusive of payment of all due holiday pay to employees. Technically when a business is sold employees become redundant as employment contracts can not be transferred. New employment agreements would need to be negoitated.

Records – You may not be given full access to all business records but you should ensure limited due diligence where the seller discloses information to you in the form of a memorandum and the accuracy of this information is covered in the sellers warranties in the Agreement.

Stay posted for further tips and advice.