As part of our daily routine as Business Brokers we are often asked “what needs to be done by a purchaser of a small business to ensure everything is in readiness when the takeover happens?” Here is a list of some of the issues that in our opinion may need to be addressed
· Establish an account with an electricity provider.
· Establish an account with a gas provider.
· Establish an account with a telephone company.
· Obtain details of any equipment under guarantee.
· Obtain details of any licence agreement.
· Obtain details of any franchise agreement.
· Obtain a letter of disclosure regarding the leasehold.
· Arrange the assignment of lease on the premises.
· If in a shopping centre meet the centre manager.
· Identify and list all suppliers.
· Approach all suppliers to obtain credit and confirm payment details.
· Identify any supply agreements and arrange their assignment.
· Confirm the name of the trading entity that will be used to buy the business e.g. partnership, company, sole trader, trust etc.
· Assign any trading name.
· Assign any computer software.
· Assign any intellectual property.
· Identify all plant and equipment included in the sale and its written down value.
· Assign the registration of any motor vehicle.
· Assign any merchandising licence e.g. cigarettes, liquor, milk etc.
· Confirm the employment of existing staff.
· Arrange training if necessary with the vendors.
· Identify staff, job descriptions, entitlements and reconcile same.
· Appoint a solicitor to act on your behalf.
· Appoint an accountant to act on your behalf.
· Ensure you have some accounting method in place from day 1.
· Establish a bank account in the name of the trading entity.
· Establish a credit card/EFTPOS facility in the name of the trading entity.
· Identify stamp duty.
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