Buying or investing in a business is a major financial decision. It is important that buyers obtain legal advice to ensure they are aware of relevant legal risks involved in the business and that the structure and documentation of the sale represent their commercial intentions. Important considerations include:

  • due diligence and legal risk analysis of target business
  • appropriate allocation of risk in sale agreement, e.g. seller warranties, employee entitlements, tax
  • robust rights and obligations for co-owners should be set out in a shareholders agreement
  • whether the sale is structured as an asset sale or share sale
  • effective legal transfer of assets