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Buying A Business @ Virtual Legal

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There are many aspects to purchasing a business and we want you to enjoy the process so this is where we can step in and guide you through the steps of conveying a business, then manage the transaction for you, while you focus on planning your new life.

Imagine how different life would be if you were in business for yourself. So you’ve found the business you can imagine yourself owning and running. You’ve secured a pre-approval from the bank and know how much you can spend. Now it’s time to make an offer and prepare a contract of sale – but where do you start? 






Imagine how different life would be if you were in business for yourself. So you’ve found the business you can imagine yourself owning and running. You’ve secured a pre-approval from the bank and know how much you can spend. Now it’s time to make an offer and prepare a contract of sale – but where do you start? 


There are many aspects to purchasing a business and we want you to enjoy the process so this is where we can step in and guide you through the steps of conveying a business, then manage the transaction for you, while you focus on planning your new life.



Virtual Legal

Buying A Business Pricing

Contract advice and negotiation, negotiation, transferring employees, leases, and licenses, conducting settlement.

Purchase Package (No Lease)

$2497.00

+ GST per Business
  • Contract Advice & Negotiation
  • Due Diligence
  • Working with your Financier
  • Assisting with Food or Liquor Licence (if applicable)
  • Preparing Settlement & Handover
  • Assisting with transfer of employees (if applicable)
  • Assisting with transfer of business name, website, and other digital assets.
  • Valued at $4,400.00
Purchase Package with Lease Assignment

$3697.00

+ GST per Business
  • Contract Advice & Negotiation
  • Due Diligence
  • Working with your Financier
  • Assisting with Food or Liquor Licence (if applicable)
  • Assigning Lease, negotiating terms in Deed, drafting Transfer & attending to Registration (if applicable). Arranging bank guarantee or deposit bond.
  • Preparing Settlement & Handover
  • Assisting with transfer of employees (if applicable)
  • Assisting with transfer of business name, website, and other digital assets.
  • Valued at $6,800.00
Purchase Package with New Lease

$3997.00

+ GST per Business
  • Contract Advice & Negotiation
  • Due Diligence
  • Working with your Financier
  • Assisting with Food or Liquor Licence (if applicable)
  • Organising new lease, drafting Transfer & attending to Registration (if applicable). Arranging bank guarantee or deposit bond.
  • Preparing Settlement & Handover
  • Assisting with transfer of employees (if applicable)
  • Assisting with transfer of business name, website, and other digital assets.
  • Valued at $7,240.00
All prices are GST exclusive. If you require any searches or other disbursements, we will advise and add these as necessary.
Virtual Legal

Buying A Business Frequently Asked Questions

Contract advice and negotiation, negotiation, transferring employees, leases, and licenses, conducting settlement.

If you already have your eye on a business and have made contact with the Seller, the Seller’s lawyer will prepare the Contract of Sale and work with us to finalise the details in the Contract. You don’t need an agent to do this as the Contract is done by the lawyers anyway. If the Seller is using an agent, then often the price is slightly higher to factor in the agent’s commissions. So if there is no agent, you may save a few dollars. However, you will just need to make sure you work closely with the Seller and keep open lines of communication as often the Agent facilitates this during the transaction.
In the event you do not settle the transaction, we will only charge for whatever time was recorded on the file so you’re only paying for exactly what you used, plus any searches done for you. In terms of what may be payable under the Contract to the Seller, this will depend on the terms of the Contract. If you terminate on a condition such as Finance or Due Diligence, then it is generally the case that you get your deposit back, so it would only be your legal and accountant’s fees for due diligence to cover off on.
Often financiers will require that there is a minimum of 7 years left on a lease if the Buyer is looking to obtain a business loan payable over 7 years (they match the loan term to the lease). So, you would just inform us, and we will make a request to the Seller to have the Landlord agree to an extension of the Term of the Lease in the Deed of Assignment, or perhaps even request a new Lease from the Landlord. If the Landlord agrees to a new lease, the Seller’s current lease would be terminated on Settlement and you would likely enter into a new lease direct with the Landlord. We will have a special condition in the Contract of Sale that will allow you to terminate if you do not approve of the lease terms once we’ve provided our advice on the lease too, so you don’t end up suck in a lease with unfavourable terms.
It is essential when you make any major purchase in life that you do your homework. Where the Seller is selling “as is, where is”, you generally will not get any warranties for the equipment, the stock, etc. So, you really need to do your due diligence on the business before you sign the contract, otherwise you could be buying a lemon. However, you may also be picking up a business for $20,000 because something has happened in the Seller’s life and they need to sell urgently, so you could also be finding a treasure chest. We always suggest you work closely with your accountant on the numbers of the business and also with the business broker as they generally have a reasonable understanding of what a business like that may be worth in the current economic climate and the real reason the Seller is exiting.
The Landlord has the right to refuse a prospective Tenant if they feel they would not make for a suitable Tenant given their financial background and experience in business (or lack of experience), although the Landlord has to act reasonably. In some cases, the Landlord may require a larger security deposit from the new Tenant if they do not have the same financial resources as the Seller did. You will have to determine whether you can afford the higher security deposit and whether you may need a guarantor for your performance under the Lease.
This will depend on the terms of the Fit Out Contribution Deed and the Lease you sign. Often there will be a period of time that you cannot sell or close your business for (often 5 years) otherwise there is some form of penalty to be paid. We will closely review these documents for you and advise you on the position.
This will depend on which State of Australia you are buying your business in, but generally speaking the Seller pays the cost of the Landlord’s legal fees, which often range between $2,000 to $5,000 depending on the law firm the Landlord engages. In some States, such as Queensland, the Landlord cannot charge for a new retail shop lease. You will still of course need to arrange a bank guarantee or security deposit for the Lease and potentially the cost of a fitout.

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Virtual Legal is a fixed fee online law firm using state of the art technology to provide you with legal solutions and manage your legal transactions. Virtual Legal was created to provide access to legal services to consumers regardless of where they live or what they earn.