//BUSINESSES

Depending on the nature of the business and your prior experience, you may wish to have the Vendor remain on for a period after settlement. This time gives you and the Vendor the opportunity for a smooth handover and for you to understand the current methods and systems used.
If you plan to take this option, you should consider whether and how the Vendor will be remunerated.

This provision should be made for in the Contract; however, if it has not, we will be able to negotiate on your behalf to make the necessary change.Contact us and we’ll help you assess which option is best for you.

Depending on the nature of the business and your prior experience, you may wish to take possession and work in the business for a period before settlement. This time gives you and the Vendor the opportunity for a smooth handover and for you to understand the current methods and systems used.
If you plan to take this option, you should consider whether and how you will be remunerated for your time, who will retain the profits for this period and if the Vendor will remain on after settlement.

This provision should be made for in the Contract; however, if it has not, we will be able to negotiate on your behalf to make the necessary change.Contact us and we’ll help you assess which option is best for you.

Before proceeding with any sale or purchase, you should seek the advice from a qualified taxation expert. Things that should be considered include

//Q is the purchase subject to GST
//Q who is to bear the CGT (if any)
//Q how is it to be financed

//Adcock’s are not taxation experts or financial advisors; however we are more than willing to discuss with you or your accountant any issues you may have. If you do not have a taxation expert you can speak to, click here for our recommendation //Adcock’s do not receive a fee or commission for its referrals

Any investment will inevitably have an affect on your tax situation and the purchase of a business is no different.
Before proceeding with any sale or purchase, you should seek the advice from a qualified taxation expert. Things that should be considered include:

//Q is the purchase subject to GST
//Q who is to bear the CGT (if any)
//Q how is it to be financed
//Q should a family trust or company be used

At //Adcock we know stamp duty laws and we work with your Accountant or Financial Advisor to ensure these transactions can be supported by acceptable documentation and that you pay no more state tax than is necessary //Adcock’s are not taxation experts or financial advisors; however we are more than willing to discuss with you or your accountant any issues you may have. If you do not have a taxation expert you can speak to, click here for our recommendation //Adcock’s do not receive a fee or commission for its referrals

Purchasers are entitled to have five clear business days, after the Form 2 has been signed, to consider whether they want to continue with the purchase. This “Cooling Off” period is not available where a business is purchased as a result of a tender or exercised right to purchase.

You shouldn’t sign any Contract unless you have every intention to proceed with the purchase. Contact us and we’ll have a Conveyancer look at the Form 2 before you sign any Contact.

A Form 2, also known as the Vendor Disclosure Statement, discloses all details known particulars in relation to the business. It should also have attached a certificate signed by the Vendor’s Accountant certifying // that the accountant or a person acting on behalf of the accountant has examined the accounts of the business; and // that the financial particulars disclosed appear to be in conformity with the accounts The Form 2 must be issued to the Purchaser upon the sale of a business, where the sale and purchase price is under $200,000. The Vendor is required to sign to confirm its accuracy, and the Purchaser is required to sign to confirm receipt. The disclosure should include any notices issued to the business for breach of legislation, details on the lease how the business operates (company / sole trader) whether the Vendor works in the business etc. A Form 2 is a lengthy document and should be read carefully before signing any Contract. You should also seek the advice of your Accountant regarding the financial state of the business. Purchasers are entitled to have five clear business days, after the Form 2 has been signed, to consider whether they want to continue with the purchase. This “Cooling Off” period is not available where a business is purchased as a result of a tender or exercised right to purchase. You shouldn’t sign any Contract unless you have every intention to proceed with the purchase. Contact us and we’ll have a Conveyancer look at the Form 2 before you sign any Contact

BEFORE you enter into a Contract, you need to ensure your ability to carry on the business is protected. Generally, this means a Lease to the existing premises at which the business operates. It is common for Lessor’s to require that a new lease be entered into, rather than assigning the current Lease. If this is the case, you need to be sure it will be on terms that you are happy with; rental, conditions, access etc.

Adcock’s will be able to work with you and the Agent to ensure the Contract is prepared to protect your needs.

If you have already signed a Contract, Adcocks will be able to advise you on your rights, and if required negotiate on your behalf. Contact us to make a time to discuss your Contract.

If the Contract includes GST, and you are registered for GST, you will need a tax invoice in order to claim back the GST component. Adcocks will ensure this is arranged and delivered at settlement to ensure you receive the maximum benefit.

If you are not registered for you GST, you should speak to your Accountant and get their advice on whether or not to become registered. If you do not have an Accountant, click here for our recommendation. //Adcocks does not receive a fee or commission for it’s referral.

//Adcock’s are not qualified taxation experts, and you should seek the advice of your accountant BEFORE entering into a contract. Things you should seek advice from your Accountant on include:

//Q do I need to be registered for GST and what does that mean
//Q how is the purchase to be financed
//Q what entity should own the Business
//Q what the long term objective is with the Land
//Q any taxation implications such as CGTand GST

Adcocks will work with your Accountant to ensure the Contract is prepared to look after your interests. Contact us to make a time to discuss your needs.