If you are BUYING A BUSINESS ...
1. Decide if you are buying assets or shares. Many, if not most, businesses are run through a company. You can buy the shares of that company, in which case you get the entire company and everything it owns (e.g. all of its assets, goodwill, and liabilities). Or you can simply buy the assets of the business from the company. There are pros and cons to both options in terms of liability and tax implications.
2. Arrange your financing. There are many options available to purchasers of business. An obvious starting point is your financial institution. Alternatives include vendor financing, taking on a partner or even family and friends. Each option presents its challenges and potential pitfalls.
3. Talk to a lawyer at Davidson Lawyers LLP. Purchasing a business represents a significant investment on your part. More so than buying a house, these transactions present an array of legal challenges which, if not properly addressed in the purchase agreement, could result in significant losses. Our lawyers will make sure you are protected and you end up owning what you bargained for.