This is an evaluation of the company`s evaluation by our internal system on Link. It is indicative and does not take into account external factors such as location, IP value, duration of lease, etc. Before you seriously consider buying a particular company, find out as much as you can about it and its competitors. In-depth verification of copies of the company`s financial documents, including cash invoices, balance sheets (particularly debtors and creditors, to determine how much labour capital is required in addition to the purchase price), personnel details (work contracts, length of service, etc.), contracts of major customers and suppliers, leasing contracts as well as all previous actions and other relevant information. Don`t be afraid to ask for information about the company, and if the seller refuses to deliver it, or if you find any misinformation, you should do so “on request” and could be a sign that you should look for a suitable business elsewhere. The down payment is usually 10% of the purchase price. It is payable to the (business broker) trust account. I recommend that this be paid “at the signing of this agreement.” Buying a business has an impact on income tax. The way the sales contract is written can influence this, so consult an accountant or tax advisor before buying. EDIT: This article refers to the sale and purchase agreement of a 2008 edition (3). This agreement was slightly updated and published on 4 September 2017. This is not a problem in time, especially if the seller sells to retire or the business completely.
However, if the seller still has a professional life and a specific qualification, the conditions of the deduction should be carefully considered by the parties. The buyer wants the deduction to last as long as possible and be as wide as possible. The seller of course wants the opposite. This ensures that the seller abandons the trade name to allow the buyer to use it. If the name of the business is identical to the trademark, the buyer would ask to change the name and be able to use it in accordance with paragraph 57. If you sell land and buildings with the store, usually in Wellington and the rest of the country, less so in Auckland, then you need a sister agreement to what is called an agreement for the sale and purchase of real estate. These clauses bind the business contract to the real estate contract and make it co-dependent, one cannot charge without the other and they settle at the same time. The details of the rental.
Copy of the lease. Remember that you want the owner`s entity name not to be the personal name. The buyer will want to know the date of the rent check to understand the risk of rent increases. The rent does not include any expenses and GST. Some companies are sold (in whole or in part) as shareholder capital, as a shareholding (instead of ownership of certain assets) of the ownership of the business. As with buying a home, both parties go through a standard resolution process. However, this is where the similarity ends, the sale of a business is a much more complex transaction. The seller must cede the lease agreement with the landlord`s written agreement, transfer assets, unlock security interest on assets, transfer intangible assets and sign any restrictions on trade agreements. The lender must put the assets, shares, business documents and keys, etc. of the transaction, on the buyer.
Here is a list of the different sections that need to be completed, taken into account and understood.