No matter whether you are buying or selling a business, the sale agreement is the document that the whole deal will pivot on. It is essential to have your lawyer draw it up if you are selling, and if you are the business buyer you will certainly need to have the document assessed by a an experienced business consultant or solicitor to ensure everything is above board and legally correct.
There are many ways you can be scammed when purchasing a business, but a lawyer will be able to pick up on anything that is not right or even a bit suspicious and check into it. Here are some of the problems lawyers can catch.
- Hidden debt. Sometimes a business owes people lots of money and when you are buying it, you can become responsible for all the debt. This can become a crippling obstacle standing in the way of those profits you expected. A lawyer can go through the document and add a clause that makes the sale legal only if there are no outstanding debts.
- If you are purchasing a business, the lease is an important part of it, unless you are planning to re-establish in another location. A lawyer can look at the lease and tell you whether it is favourable or needs some clauses added to it so you can continue to trade in the way you planned.