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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22306
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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Chris, Thank you for your time. and I am the Business owner

Customer Question

Hello Chris, Thank you for your time.
My name is ***** ***** I am the Business owner (50/50% shareholder together with my wife) of ****************** We are based in Christchurch.
For reasons we want to sell our business. Last years Turnover was 36.000,-. Revenue $24.000,-
I'm looking for a legal advice how to approach a potential buyer. I have a candidate who I meat this Wednesday and I have downloaded a online free Selling Agreement. See the attachment:
http://www.adls.org.nz/media/2895959/4001-sale-purchase-of-a-business-fourth-ed-2008-3-highlighted.pdf
What can you advice me to do?
Kindest Regards,
******************
********
******************
Submitted: 3 months ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 3 months ago.

This site is not intended to give you specific legal advice but more general principles. For the details and specific wording of clauses you are best to consult your own lawyer.

The main things you should look out for when you sell the business is any representation which you make about the customers, your list of customers and any representations about the turnover. If this is a commercial cleaning business then I doubt whether you have a substantial amount of stock, but you do need to include something about the valuation of the stock at the time of handover. Normally there is a 10% plus or minus variation permitted.

Sometimes a purchaser will want a restraint of trade clause to stop you competing with him for a period of time after the purchase, and for an agreed geographical area. These are quite common for this sort of business and you will need to consider what is a reasonable restriction.

If there are any particular customers who are important to you, you may need to provide lists of contacts.

Often a purchaser will also want to look at the books of the company and your GST returns, which give a reasonably good picture of the health of the business. That would be a reasonable request.

Please let me know if there are any other specific issues of concern

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