5 EASY STEPS TO BUYING A BUSINESS
STEP 5 – THE TAKEOVER
GMO recommends the appointment of a Conveyancer/ Settlement Agent.
- Organise the money movements and liaise with your Banker and Finance Broker to arrange a settlement time with the Seller’s Conveyancer.
- Liaise with the Landlord/Managing Agent on your new lease documents and also handle transfer of licenses associated with the business.
- Organise business names transfers and help you with housekeeping issues such as phone and electricity. As the new owner, you will need to decide if you wish to employ all, or some of the staff and give the Seller time to advise staff members of their employment going forward and introduce you to the staff prior to Settlement Day.
On Settlement Day, you and the outgoing owner should:
- Arrange for the stock to be counted
- Check off all the plant and equipment of the business
- Transfer control of keys, alarms, domain names, websites, security codes and computer systems
- Cash floats, parking access and staff employment transition will need your attention too!
- Arrange transfer of purchase funds
- Arrange transition of Facebook and other social media
- You and the outgoing owner will also need to agree when and how the suppliers and key clients of the business are informed of the change of ownership
- Have the correct stock and cash float in place for a successful first trading day
- Be satisfied that all licence transfers have been approved
- Understand the role of the Seller in the training/assistance period following Settlement Day
Settlement funds usually transfer on a Friday and stocktake and keys handover usually occurs over a weekend.
You are now in business!