Buying or selling an existing business requires research and planning.
A seller has to consider whether it wants to sell the shares or the assets of the business. The seller may also wish to sell the business to a reputable buyer who can make the payments on time.
The buyer must consider whether it wants to purchase the assets or shares of the business. The buyer should also conduct due diligence on the seller, the assets and on the company. If there are outstanding payments to be made, liens on assets, court cases, employee complaints, outstanding GST/HST filings etc, the buyer should require that these be settled before making the purchase.
A business sale purchase transaction should allow both parties to conduct due diligence and if required, authorize money to be held in trust with a professional until the transaction is finalized. Holding payments in trust ensures that the seller gets paid once the business is transferred or the buyer gets the money back if the business deal does not go through.
As business lawyers, we help our clients in business sale purchase transactions. Whether you have a small business or a large enterprise, we can represent you in your sale/acquisition transaction.