Buying an Established Business? Avoid These Common Pitfalls

Acquiring a business can be a smart and efficient way to grow, diversify your revenue, or expand into new markets. But without proper legal guidance, the transaction can quickly become more of a liability than an opportunity.

At CL+C, we regularly assist clients through the acquisition process—helping them identify risks early and secure deals that are structured for long-term success.

Here’s what to keep in mind:

Due Diligence is Non-Negotiable

Investigate existing contracts, employment arrangements, financial records, and compliance obligations to uncover any red flags before you commit.

Know What You're Buying

Will the deal be a share sale or asset sale? Each structure carries different tax, risk, and transfer implications. We help you decide what’s right for your objectives.

Re-negotiate Where Necessary

Supplier, lease, and employment agreements often need to be reviewed and potentially restructured to align with your new ownership.

Secure IP and Licences

Ensure all intellectual property, branding, permits, and licences are transferrable—and properly assigned to your entity.

Understand Employee Obligations

Will you inherit existing staff? Be clear on entitlements, redundancies, and any obligations under employment law.

We guide clients from initial expression of interest through to completion and handover—supporting you with documentation, negotiation, and strategic advice.

Before you buy, let us help you ask the right questions.

 

DISCLAIMER

The content given herein is provided for information purposes only. It is general in nature and does not constitute legal advice and should not be used as such. Formal legal advice should be sought in particular matters.

Connected Legal + Commercial does not accept any liability to any person for the information (or use of such information) which is provided herein or incorporated into it by reference.

The information is provided in good faith on the basis that all persons accessing the content undertake responsibility for assessing its relevance and accuracy and will seek appropriate formal legal advice accordingly.

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Shareholder Agreements: Prevent Disputes Before They Happen

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Navigating Complex Commercial Contracts: Top Tips for Businesses in Growth Mode