There is a standard Contract for the purchase of a business which enables you to set out the agreement subject to a number of standard conditions and special conditions which you can insist upon according to your circumstances.
Each special condition needs to be specifically drafted and include a time for satisfaction. Set out below are some standard conditions and special conditions by way of example:
- Due diligence – satisfactory review of the business records which support the Seller’s representations
- Trial period - where you can attend the premises for an agreed time to verify the takings of the business (applicable to cash businesses)
- Finance approval
- Lease conditions - leases being granted or assigned on conditions suitable to you
- Staff Retention - nominated key staff remaining with the new owner for an agreed period.
- Special Conditions - these can include the granting or assignment of licenses, permits, contracts, agencies, patents, re-zonings, or any other thing or condition necessary for your successful continuation of the business.
When all of the conditions have been satisfied the contract will become unconditional and
settlement will take place normally within the time stipulated on the contract.