Buying & Selling Businesses Blog Series - Part 1 - Overview

Posted by Malcolm Campbell, Luke Mitchell on 09 February 2016
Buying & Selling Businesses Blog Series - Part 1 - Overview

In this 6 part blog series we provide an overview of the process of buying or selling a business and some of the important issues to consider and the traps to avoid.

Buying & selling a business is often a complex and time consuming process. Firstly there is the difficult decision whether to sell/buy in the first place. Then there is the process of undertaking due diligence, negotiating the deal and then following through with the transaction.

No matter the size or nature of the business the issues which need to be considered and investigated and the processes that need to be followed are very similar.

However, there are a number of very important issues that you need to consider BEFORE entering into a contract to buy/sell a business. In this blog series we’ll cover some of the most important issues we think you should consider.

Snapshot Of A Typical Sale/Purchase Process

  1. Confidentiality Agreement/NDA executed;
  2. Information Memorandum issued;
  3. Negotiation of sale and purchase documentation;
  4. Due diligence and disclosure documents;
  5. Execute sale/purchase documentation;
  6. Satisfaction of conditions precedent, preparation for settlement, including items such as offers of employment and settlement adjustments;
  7. Settlement/completion;
  8. Calculate any relevant post completion price adjustment;
  9. Attend to ASIC and other regulatory filings.
  10. Integration into the business.

We suggest that you start considering and addressing these issues as early on as possible so you are aware of all issues from the outset, to ensure you are making a fully informed decision and so that the process can flow as smoothly as possible should you proceed with the transaction.

In the next blog we cover the structure of the transaction.