If you’re looking to purchase a business in Cairns, it’s absolutely crucial that you undertake due diligence that goes beyond the contract. At WGC Lawyers, our professionals offer expert legal guidance on conveyancing in Cairns and across QLD. In this article, we’ll cover how to identify potential risks and liabilities apparent in the structure of the business, what you need to know about the existing contracts of the businesses and how to check if the licences and compliance requirements are in order. Contact us with any questions or to book a consultation.
What Risks Exist in the Business Structure and Liabilities?
When looking to buy a business, you must understand its overall structure and any liabilities that it may have. Any financial obligations, such as outstanding debts, leases, supplier contracts or pending tax liabilities, make transfer to a new owner. Moreover, you need to be aware of how a business is classified and where the decision making is legally arranged. Contacting an experienced property lawyer in Cairns and QLD is your best choice.
Are Licences and Compliance in Order?
Depending on the industry in which the business in question operates, it will have a number of different licences and compliance restrictions that it must acquiesce to. Non-compliance can lead to fines, operational restrictions or even closure. When considering buying a business, it’s important that you verify that all applicable licences and permits are valid and transferable.
What Should You Know About Existing Contracts?
The business that you are considering purchasing may have pre-existing supplier and customer contracts that may impose obligations or restrictions that can impact business activities. Identifying and reviewing these contracts before proceeding can help you figure out whether they will unduly impact the potential profitability of your business, as well as provide you with insights on how you can protect your investment from unexpected legal or financial issues.
When it comes to undertaking due diligence for buying a business, your best choice is to pick an expert at providing legal guidance for conveyancing in Cairns and across QLD. Contact our team online, or call us on (07) 4046 1111 to book your consultation.