Buying vs Starting your own
Analysing and Valuing a Round
Questions to Ask
Sales Contracts etc
Sale Contracts Etc.
Vendor Statement Requirements
The sale of small businesses (Vic) are regulated by the previsions of the Estate Agents Act 1980 ("the Act") and the Estate Agents Regulations 1997. Under the Act, a business means a hotel, boarding-house, a retail, manufacturing, professional, service or trading business and includes any share or interest in any stock, goodwill, property or other asset. A small business is one where the goodwill, plant, equipment and fitting are sold or offered for sale at a price not exceeding $200,000.
The failure by a vendor or agent to provide a vendor's statement with all the required particulars provides the purchaser with the right to terminate the contract and recover any money already paid. This right can only be exercised before taking possession of the business or three months from the date of contract, whichever occurs first.
In other words if the details of the business, trading records, financial records etc. are not there in black and white and a paper trail cannot be found on all aspects of the business then I would leave it alone.
I have heard so many stories like there's 51 clients on the books and a further 20 clients on the side (cashies as they call them) to you as the buyer those 20 "cashies" don't exist and you should not pay for them. If the vendor wants to give them to you for nothing that is fine then you can put them on the books.
Contract Of Sale
A contract of sale should include details of both parties (Vendor and Purchaser). Should also include the contact details of the business. Details of sale, including a break down of Purchase price, any restrictions to the vendor and any further agreements made and should be signed by both parties.
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