How An Auckland Lawyer Can Help You When You Buy A Business
Buying a business in Auckland can be a technical and complicated process. This is why it is recommended that you hire an Auckland business lawyer to help you with the purchase. The lawyer will be able to carry out due diligence which is the process of checking all aspects of the business and sale to ensure that you are making a wise decision in purchasing the business.
Checking The Confidentiality Agreement
When you buy a business, you are generally asked to sign a confidentiality agreement. This agreement will stop you from disclosing confidential information during the sale negotiations. It is important that you have a lawyer read through the agreement before you sign it. Many people have found that confidentiality agreements have unfair provisions and this is something that your lawyer will be able to protect you from.
Checking The Business Environment
When completing due diligence, it is important that you consider the business environment that you will be operating in. A lawyer will be able to easily complete this check as they will generally have access to information that you do not. Some of the points that the lawyer will check will include the business competitors, the growth of the market, the growth of the business and the regulations that the business will be subject to.
While it is possible to complete all of these checks yourself, a good Auckland business lawyer will be able to do this easily. They will also be able to access industry associations, government departments and statistics that you cannot. Lawyers that specialize in business purchases will often have much of this information on hand to help with the due diligence.
Understanding Why The Business Is Being Sold
When completing due diligence yourself you may consider asking the seller why the business is being sold. However, this is not always the best option because the seller is unlikely to provide a full and frank explanation for the sale. A lawyer will be able to look for further reasons than the ones that the seller will provide.
The lawyer will be able to determine if the business is being sold because it has been badly managed or run down. In these cases, this could be a good opportunity for you as the buyer. Your lawyer may also determine that the business is being sold because of an increase in competition which would not be a good opportunity for you.
Checking The Business For Legal Issues
One of the aspects of due diligence that lawyers excel at is the identification of any legal issues. A lawyer will contact the Auckland council to determine if the developmental approval for the business matches what the seller has stated. The lawyer will also be able to determine if there are any government regulations that the business will need to comply with. If there are regulations then the lawyer can determine if the business has adhered to them and all the licenses have been obtained correctly.
For legal advice in buying a business in Auckland, contact McVeagh Fleming and Co. Their website is www.mcveaghfleming.co.nz.