Owning a business is not easy, and running even more so. Some businesses manage to stay afloat while others end up failing. But there are a few instances when an opportunity started by someone else can be continued by another aspiring entrepreneur. Some businesses are passed to friends and family, while others are sold to colleagues. No matter the circumstance, it isn’t as easy as just handing over the keys. For this transaction, you would have to go through Business Conveyancing.

 

What Is Business Conveyance?

Business Conveyancing is the legal transfer of business ownership from one person to another. It’s more than just giving the keys and making introductions. Everything needs legal assistance to confirm that the sale and transfer of management have been completed. A lawyer must be present for approval of the contract. There are three steps to follow, which are explained below:

1. Pre-Contract Settlement

Before anything official is signed and written, the buyer and seller of the business owners will discuss the terms and conditions. After everything is discussed, everything has to be officially written in a contract, which is where a lawyer steps in.

Always remember not to sign a contract you haven’t read. Before signing, the conveyancer should thoroughly read the contract to give feedback. If everything agreed upon is present in the contract, everything will be good to go. But if there are revisions that need to be made, they should be included in the final contract.

2. Settling the Contract

The contract should provide proof of the sale of the company, but it should also provide the buyer with an in-depth look at the different parts of the business. They are entitled to know how much it made that year, how much it cost to run it, and what the financial report looked like in the past year. 

The financial decline may not be a problem for some entrepreneurs if they love a challenge. If the objective is to save it from shutting down, they wouldn’t mind taking the time to build it up again.

3. Payment Plan

The last thing to consider is how much the quoted price is and how to start a payment plan. Once the contract is signed and settled, the buyer can now transition to the new business owner. The former owner has to show them around the facilities, grant them access to the things they need to steer the ship and provide copies of the signed contract. 

 

Conclusion

Business conveyancing is necessary to hand over the opportunity you’ve cultivated to capable hands. While the business might no longer be in your name, you could maintain your legacy by passing on the torch. Whether you’re giving it to a family member, friend, colleague, or buyer, you can be proud that you’ve started something that someone else can continue to uphold.

If you’re thinking about passing your business to another interested entrepreneur, then you’re most likely on the hunt for the best Ipswich commercial conveyancing lawyers around. Springfield Legals is a law firm specialising in business conveyancing and income protection, as well as succession planning and family law. Contact us now for more information.