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By Brian J Tran

Have you ever thought about buying or selling a business?

If so, here are a some typical components of a businesses to think about beforehand. Are they all covered under your Contract of Sale of Business? Or is there more to include?

• Business name
• Right to occupy physical premises (for eg, a lease)
• Plant and equipment
• Fixtures and fittings
• Stock
• Work-in-progress
• Goodwill
• Contacts (including telephone numbers and emails)
• Contracts (for eg, ongoing retainers, supply agreements, trading terms and conditions, distributor agreements, exclusivity agreements, licences, independent contractor agreements, and consultancy agreements)
• Employees
• Intellectual Property (including copyright, and any registered trade marks, patents and designs)
• Statutory licences (such as business related permits)

Remember, it is essential for the seller to ensure it is able to legally transfer all that is agreed upon before offering the business up for sale.

As for the buyer, it is equally important to ensure it is in a position to accept such transfer with a view to profit before for signing.

Need a contract drafted or reviewed? Contact us today (03) 9585 6455.