Following on from my previous blog:
* You should ensure you have access to the business before settlement to be introduced to the clients.
* The Sales and Purchase Agreement should state that risk of the assets passes from the Seller to you on settlement and possession date.
* What type of insurance will you require – Public Liability, Business Insurance, Plant and equipment, Motor Vehicle. Ensure you list everything and obtain the appropriate quotes, generally through a Broker.
* What costs are to be apportioned between you and the Seller at settlement – Rates, Rent, any Licencing fees.
* Will there be a Restraint of Trade – You are entitled to restrain the Seller from competing against you in a similiar type of business generally for two years, and within a certain radius from the premises.
* What types of conditions are required in the Sales and Purchase Agreement – Subject to Finance, Landlord consent, Land Information Memorandum, Due Diligence, Confirmation of accounts.
* Are there any franchise or licence agreements to be assigned.
Stay posted for the final blog regarding purchasing a business. Warm Regards Kim
