Are there key staff and/or customers essential to the success of the business - how will they react to the sale? Are employment contracts or supply agreements in place?

Are full accounts for the last few years available - buyers should get these professionally inspected.

Is the business equipment included in the sale - is it owned or leased?

If the business is sold as a going concern the buyers will usually have to take on the employees.

If the transaction involves business premises, are they freehold or leasehold? Click here to go to our commercial property page.

Are any special licenses required eg. a liquor licence - what is required to obtain these licences?

Buyers need to consider whether to buy as a sole trader/partnership or through a company. Do you know what the differences are?

Is the business currently owned by a company? If so, is the company being sold or simply some of its assets?

Buyers - Is it essential to the sale that the Sellers agree not to compete in the locality?

How is the price to be split between premises, equipment and goodwill - what are the tax implications of such a split?

What are the VAT implications of the transaction - usually none if sold as a "going concern" but there are traps for the unwary.

A significant number of business sales collapse because the Buyers cannot get the required finance. Buyers should organise their finance as soon as possible.