Purchase of Business

How We Can Help

Initial Consultation

We begin by understanding your goals, preferred business type, and investment timeline. During the initial consultation, our lawyers review key business documents, including the Contract of Sale and financial statements, identify potential risks, and provide practical legal advice so you can make confident, informed decisions before committing to a purchase.

Contract Review

Initial Consultation

Our team reviews the Contract of Sale of Business and Section 52 Vendor’s Statement (where applicable), checking for hidden risks, unclear terms, and unfair clauses.

We explain your rights and obligations in plain language and ensure the contract reflects your intentions before you sign.

Negotiation

Initial Consultation

Due Diligence

Once you have identified a business of interest, we assist with reviewing offers, evaluating terms, and negotiating key conditions. Our guidance ensures that the structure of the purchase protects your interests, addresses liabilities, and clarifies responsibilities, giving you peace of mind throughout the negotiation process.

Due Diligence

We guide you through the due diligence process, reviewing contracts, leases, intellectual property, employee arrangements, and regulatory compliance. We help you understand any potential risks, respond to queries from sellers, and ensure all necessary information is thoroughly examined before proceeding.

Settlement Coordination

As settlement approaches, we coordinate the preparation and execution of all legal documents, including the sale agreement and any ancillary agreements. Our team ensures that statutory requirements are met, assets and liabilities are correctly transferred, and the settlement process is completed smoothly and efficiently.

Ongoing Support

Even after the purchase is finalised, our lawyers remain available to advise on transitional arrangements, contractual obligations, and any disputes that may arise. We provide ongoing guidance to ensure that your new business investment is legally secure and well-positioned for success.

5 Things Every Purchaser Should Know

1. Understand the Business You Are Buying

Before committing, it is essential to understand the operations, financial health, and market position of the business. A thorough assessment ensures you are making a sound investment aligned with your objectives.

2. Review All Documents Carefully

Accurate and comprehensive review of financial statements, contracts, licenses, leases, and employee arrangements is critical. Any gaps or inconsistencies may affect the value or legal standing of the business.

3. Be Aware of Legal and Regulatory Obligations

Purchasing a business comes with obligations such as compliance with employment law, leases, intellectual property rights, and statutory requirements. Understanding these obligations early prevents unexpected issues after settlement.

4. Plan for Tax and Financial Implications

Business purchases may involve GST, capital gains, or other tax obligations. Early professional advice ensures the transaction is structured optimally to minimise financial risk and maximise benefits.

5. Negotiate Terms That Protect Your Interests

The terms of sale, including warranties, indemnities, and ongoing obligations, can significantly impact your investment. Careful negotiation and legal guidance are crucial to safeguard your interests and ensure a smooth transition.

Frequently Asked Questions

Please reach out to us at info@legalwave.com.au if you cannot find an answer to your question.

What should I check before buying a business?

Before signing any contract, you should review the Contract of Sale of Business and Section 52 Vendor’s Statement. Key things to check include the business’s financial performance, lease terms, employee entitlements, existing contracts, licences, and whether there are any outstanding debts or disputes.

Legal Wave can assist with conducting a detailed due diligence to help you make an informed and confident decision.

What is a Section 52 Vendor’s Statement and why is it important?

A Section 52 Statement provides key financial information about the business being sold — including trading results, asset details, and lease information. It’s required by law for small business sales under $450,000. This document helps you verify the business’s financial health and ensure the seller is being transparent. Your lawyer can help identify any missing or inaccurate information before you proceed. documentation.

Do I need a lawyer to buy a business?

Yes. Buying a business involves complex legal and financial risks that require careful review. A lawyer will assess the contract, explain your obligations, manage due diligence, and ensure all licences, leases, and assets are properly transferred. Having a legal professional on your side helps prevent costly mistakes and protects your investment.

What is due diligence and how long does it take?

Due diligence is the process of verifying all key aspects of the business before finalising your purchase — including finances, leases, licences, supplier contracts, and compliance issues. It typically takes two to four weeks, depending on the complexity of the business

How do I make sure the business lease is transferred to me?

If the business operates from leased premises, the lease must be assigned to you as part of the purchase. The landlord’s consent is usually required. Your lawyer will review the lease terms, handle the assignment paperwork, and ensure the transfer is legally binding at settlement.

Do I have to take on the seller’s employees?

In many cases, the buyer takes over some or all of the seller’s employees. Their entitlements (such as annual leave or long service leave) must be dealt with in the contract. Your lawyer will ensure these obligations are clearly defined so there are no surprises after settlement.

Can I make changes to the business after purchase?

Yes — but you should first review the terms of the sale and any licences, leases, or franchise agreements that may restrict changes. It’s best to get legal advice before altering the business name, operations, or structure to ensure compliance with relevant laws and contracts.

What happens after settlement?

After settlement, ownership of the business assets, goodwill, and licences is transferred to you. Legal Wave ensures all documents are lodged, all payments are finalised, and all registrations are updated with ASIC, the ATO, and other relevant bodies. We also provide post-settlement guidance to help you transition smoothly into your new business.

Special Offer: 20% Off All Commercial Services

Special Offer: 20% Off All Commercial Services

Special Offer: 20% Off All Commercial Services

Special Offer: 20% Off All Commercial Services

Special Offer: 20% Off All Commercial Services

Special Offer: 20% Off All Commercial Services