Need NZ Legal Assistance?

It is 10:13 pm on Mon in NZ and our office is currently closed. We are open from 8:00am to 5:30pm (Mon-Fri). Email us by filling in our enquiry form... Send an Email Enquiry →

Answer

Commercially astute legal advice is vital to secure the best return for all your years of hard work building up the business.

Deciding what information should be included in your due diligence pack is vital for maximising returns. When deciding what information should be included you should consider the following questions:

  • Marketing the Business – when marketing the sale of the business what information should be included in the marketing material? How do you protect commercially sensitive information contained in the due diligence pack and ensure that that this information is not disclosed to rivals?
  • Financial Accounts – do the last 3 years financial accounts presented to potential purchasers contain a true and correct picture of the company's profitability or are their personal expenses (which reduce) the profit recorded in the accounts?
  • Valuation of the Business – what is the methodology used by the valuer to value the business? Will a valuer assess your business at a figure similar to your asking price?
  • Imputation Credits – are there any imputation credits or other tax losses which should be used up before the income stream of the business is lost?
  • Lease – what are the landlord's requirement to assign the lease e.g. respectable purchaser with the financial resources to meet the tenant's commitments under the lease. Alternatively, if you own the business premises what lease terms should be offered to the successful purchaser?
  • Licence Agreements – are there any licence agreements or other licence agency agreements that are coming to an end which should be renewed prior to offering the business for sale?

Have a question? Get in touch.

Related Business Law FAQs

← View all FAQs

Recent Reviews...

“I would like to take this opportunity to say thank you to John Stirling and Kathryn Wynd for their patience and understanding. We are so honored to have John and Kathryn looking after us. Whenever someone asks if I know of legal firm, I always say Turner Hopkins.” ~ Manaia
“John is very easy to talk to, he never makes you feel dumb, and never makes you feel like you are wasting his time for asking questions. He explains everything very clearly, every time. John's support staff are also very efficient and so easy to deal with. No detail is missed when dealing with them. My husband and I are fans of them all :)” ~ Jess
“I can't speak highly enough of Jenny. She got everything done in a timely manner and when my ex-husband threw a spanner in the works at the eleventh hour she got the required documentation to his lawyers and settlement back on track.” ~ Tracey