201601.28

A Short Guide to Selling your Wholesale or Manufacturing Business

The sale of a manufacturing or a wholesale business will generally give rise to different legal issues to the sale of a retail business due to the nature of the assets being sold, the structure of the sale, and the financing and valuation of stock. Asset or Share Sale It’s important to determine from the…

201508.24

A Tenant’s Guide to Commercial Leasing

In the context of operating a business, leasing costs will often represent one of the biggest expenses, next to wages. Importantly, too, the lease will often be critical to the viability of a business, particularly in a retail context. As such, before you enter into a lease, it’s important to appreciate that rent is only…

201504.14

Sale of a Rent Roll

The sale of a rent roll involves different considerations to the sale of many other types of businesses due to the nature of the assets and goodwill being sold. Multiplier The value of a rent roll is usually determined by a formula which is a multiplier of the yearly management fee.  The multiplier adopted will…

201503.19

Restraints of Trade: Protecting Goodwill

A restraint of trade (also known as a restrictive covenant) is a clause that seeks to restrict a party from engaging in a particular form of business or commercial activity. The underlying purpose is to protect a party’s business from competition.  Some common examples include: sale of business agreements where a vendor (and its directors)…

201501.16

Legal Guide to Buying a Commercial Property

The purchase of a commercial property will usually require a more detailed investigation into the contract terms, the title and planning information, and the lease terms than may be the case for the purchase of a residential property. A competent property lawyer should be able to assist you with understanding the principal terms of the…

201501.15

Buying a Franchised Business

Franchising is a business model whereby the franchisor grants to the franchisee the right to operate a business utilising a trade name and business system.  The franchisor usually exercises a high degree of control over the franchisee through established management, marketing and operating procedures. Franchising has been successful as it usually provides a tried and…

201501.14

Assigning a Retail Lease

I was recently involved in a small business transaction where a landlord’s managing agent sought to impose a 4.4% “Transfer fee” on a tenant in connection with the assignment of a retail lease.  The “Transfer fee” was calculated as a percentage of the annual rent inclusive of GST, and amounted to approximately $7,000. In this particular…

201501.14

Small Sales, Big Risks for Business Brokers

The failure of a vendor or a vendor’s agent to comply with the disclosure requirements under the Estate Agents Act 1980 (Act) when selling a small business in Victoria can result in penalties, lost sales and potential claims by disgruntled vendors. Section 52 of the Act imposes an obligation on a vendor and their agent…