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This Guide by Kafrouni Lawyers and the Australian Institute of Business Brokers (AIBB) is designed for use by buyers and sellers of businesses, business brokers and professional advisers when using the REIQ Business Sale Contract (“Contract”). The purpose of the Guide is to explain what particular parts of the Contract mean and to highlight (either in the content or the process) various risks of getting things wrong. Continue reading
Pharmacy sales have many similar issues to other retail businesses. However, there are some very significant issues that require a buyer’s particular attention prior to entering into a contract, so that the buyer can legally run the business after settlement. Continue reading
When a business has a great idea for an iPhone application, it is understandable that the development of the application itself takes priority. However, it is important to bear in mind that an application gives rise to legal obligations, not only between the business and the retailer (e.g. Apple) but also between the business and the end user. This is where the business must consider the end user licence agreement that will be required, not only as it is required as part of the development and approval process with the retailer, but more importantly because of the legal obligations that might arise. Continue reading
Under the Electronic Transactions (Queensland) Act 2001 (ETA) there is a need for prior consent to send contract documentation by electronic means. If a contract is to be exchanged between parties by fax or email then consent must first be obtained from the recipient receiving the contract. It is not appropriate to have a clause (or special condition) inserted into a contract as the ETA states the recipient must have already given consent at the time the information (contract) was received by them. Continue reading
Whilst purchasing an accounting firm, or any other professional services business for that matter, does have similar issues to other commercial businesses, there are some very important issue that require particular attention to protect a buyer’s interest and their ability to run the business following settlement.
If a creditor is owed at least $2,000 by a company, a creditor has a few options to try and recover the debt. The first is to send a letter of demand (usually from a lawyer). If that doesn’t work, there is another option aside from issuing court proceedings, which is issuing what’s called a “statutory demand”.
One of the most important features of a prospective business is its goodwill, which has sometimes been described as the very ‘sap of life’ of it.
As a potential buyer, what would you do if you bought a business with significant goodwill, only to have the seller open up a competing business nearby and trade off the goodwill of the business that was sold to you? How would you react if the seller used confidential customer lists of the business to peach your customers for their newly-created business? Continue reading
Does a franchisor need a real estate agent’s licence to assist a franchisee to sell their business? Continue reading
Does a business broker need a financial services licence to sell shares in a private company? Continue reading
Confidential business information must be considered and protected in the process of selling a business. A business seller must work closely with their business broker and lawyer to determine what should be disclosed and how it should occur. The seller and business broker should also ensure that they are in fact dealing with whom they think they are; otherwise they might find confidential business information in the hands of a competitor. Continue reading