Navigating the complex world of business transactions can be challenging, particularly if you’re purchasing or selling a business for the first time. If you want to ensure a smooth and efficient process, it helps to engage the services of a commercial lawyer. To help you understand why, we explore the role of a commercial lawyer and why they can prove to be invaluable.
What Is A Commercial Lawyer?
A commercial lawyer specialises in commercial, business and property law, focusing on areas that directly impact businesses, including contracts, transactions and the legal implications of day-to-day operations. They provide their clients with practical, cost effective advice on many issues that affect their business, including:
- Succession planning
- Partnerships
- Business structuring
- Family trusts
- Self-managed super funds
- Leases
- Retirement village agreements
- Personal guarantees
- Loan agreements and mortgages
- Insolvency and liquidation
Commercial lawyers can also handle commercial sales and purchases, such as corporate real estate transactions. A big part of their role is reviewing the various agreements and contracts associated with these transactions to ensure that they are legal and proceed without any issues.
Why Do I Need A Commercial Lawyer When Buying A Business?
Acquiring a business is a significant investment and can involve various potential risks and legal complications. Here’s why you might need a commercial lawyer when buying a business:
- Setting up the right purchasing entity: It is important to ensure that the entity that you purchase the business in will protect your personal assets and is the most tax effective vehicle. This can be done through a company or a family trust for example and needs to be established prior to a contract being entered into.
- Understanding Legal Obligations: Business acquisitions involve traversing a complex legal landscape. A commercial lawyer can help you understand the legal obligations associated with buying a business, from contracts to licensing and beyond.
- Conducting Due Diligence: Commercial lawyers will conduct a thorough investigation into the business you’re buying, known as due diligence. This involves examining the business’s financial records, contracts and legal status to identify potential risks before you make the purchase.
- Drafting and Reviewing Contracts: The purchase agreement and other related contracts need careful drafting and review. A commercial lawyer ensures that these documents are accurate, fair and legally enforceable.
- Negotiating the Deal: Lawyers can play a crucial role in negotiating the terms of the business purchase, using their legal and industry knowledge to ensure you get the best deal possible.
- Regulatory Compliance: Every industry has its regulatory framework, and a commercial lawyer can ensure your new business complies with all relevant laws and regulations, protecting you from potential legal pitfalls.
Why Do I Need A Commercial Lawyer When Selling A Business?
Selling a business is a complex transaction that involves numerous legalities. Here are a few reasons why engaging a commercial lawyer can be incredibly beneficial:
- Preparation for Sale: A commercial lawyer can guide you on how to prepare your business for sale, ensuring that all documentation is in order. This not only builds trust with potential buyers, but also highlights the value of your business.
- Due Diligence: Buyers will typically conduct a due diligence process, assessing the value and risks associated with the business. A commercial lawyer can help ensure your business is prepared for this scrutiny, minimising any potential issues that could affect the sale.
- Contract Drafting and Negotiation: The sale of a business usually involves complex legal agreements. A commercial lawyer can draft and negotiate these on your behalf, ensuring your interests are protected and potential disputes are minimised.
- Regulatory Compliance: There may be regulatory requirements to meet when selling a business, such as industry-specific regulations, employment laws and environmental regulations. A commercial lawyer will ensure that the sale complies with all relevant legalities.
- Risk Management: A lawyer can help identify and mitigate risks associated with the sale, such as potential future liability. They can also structure the deal to minimise tax implications, providing significant financial benefits.
Looking For A Townsville Commercial Lawyer? Contact CBC Lawyers
Whether you’re considering buying a new business or you’re ready to sell an existing venture, hiring a commercial lawyer is always good practice. At CBC Lawyers, we can provide practical, cost-effective legal advice for those buying or selling a business.
Our team appreciates and understands the multitude of issues faced by business owners. In fact, many of our senior members currently own, or have previously owned businesses, so they are well-positioned to answer questions you may have. To find out more about our legal services or to book a consultation, give us a call today.