When you sell a business, it’s important to get legal advice so you don’t leave any legal headaches after the transaction.
To stop the business coming back around and catching you out, it is important to appoint a solicitor so checks can be completed, and the continuing exposure to the business stops.
1. Supplier Contracts
You will need to consider cancelling any contracts such as telephones, cleaners, IT storage, IT suppliers, stationery, website, marketing, advertising etc. The list goes on and on.
At the time of settlement, it is important to ensure that you have properly ceased trading with all of your suppliers, just so you don’t have any outstanding obligations to pay them any further money after the sale of the business.
You will also need to check your contracts with these suppliers to make sure you don’t have any continuing personal guarantees for the business.
2. Employment Contracts
Your employee entitlements such as long service leave and personal leave will be calculated at settlement. Sometimes, the Buyer of your business will keep your employees on and if that is the case, you will need to know what your obligations are to your employees. In the case that the Buyer decides they do not want to keep any of your employees on, your list of obligations change and that is something you will need to know.
3. Leases
Generally, when you own a business, you will have a Lease in place to rent out the premises. At settlement, you must ensure that the Lease has been properly transferred to the new owner. If the Lease has not been properly transferred to the new owner, you or your company might have a continuing liability to pay the rent.
In some cases, the new owner can go bust. This means that the Landlord will check whether they have any rights to have the rent paid by you.
If you would like to discuss your business and how to sell it please contact Creevey Horrell Lawyers to speak with our commercial team today.