Buying a business

Buying an existing business is an important financial decision and should not be rushed. With assistance from your accountant and lawyer, you should carefully consider all aspects of the business purchase. Some of these considerations are listed below.

The sale and purchase agreement

A written agreement is recommended to prevent future confusion or disputes.
When you buy a business, you can use a standard business sale and purchase agreement (available from the Auckland District Law Society), write one yourself, or instruct your lawyer to write one.

Corporate Insolvency

Unfortunately, corporate insolvency or financial stress is fairly common in the business world, but being aware of the process and your rights and obligations can help ease the process.

When a business fails, the company either:

• goes into receivership
• enters a compromise with its creditors
• is put into liquidation.

Understanding Property Law

There are many aspects to property law that you may wish to consider. As with other aspects of law, this is one area where planning in advance can reap benefits:

Trusts

A trust is a written agreement between you and people you trust (the trustees). You appoint trustees to look after your assets and/or other personal affairs. The trustees hold the assets you have transferred into your trust on behalf of the beneficiaries.

Buying or selling a property?

Sale and purchase agreement is always used whenever you purchase or sell a house in New Zealand.

The most common ways people buy or sell houses are by auction, tender, negotiation, or fixed price. Sales can be made privately or with the assistance of a real estate agent.

Welcome

Welcome to the Smith and Partners blog. We will be regularly posting about legal issues relevant to New Zealand businesses. Follow us on Twitter @smithpartners for the latest law news.

Smith and Partners are a West Auckland law firm with an experienced legal team. We work legal matters including civil cases, employment disputes and contracts, corporate legal matters, family law and property law matters.

This blog is geared towards buisinesses and individuals looking for a resource for legal advice related to employment, property and commercial law.