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Hi All...

My husband and I are planning on buying an Electrical Contracting Company.
Obviously my husband is qualified in the field.

We are new buyers and have absolutely no idea what the first step is in goin about buying a business.

Basically, we have found the desired company in the best spot in our lovely country and would move there tomorrow.

What are our initial responsibilities as buyers???
What legal information do we need to inquire and should i start off by getting a lawyer right away?

We will be going down and meeting the current owners soon..
And i need as much info as possible, so that i can ask relevent questions and in turn get as much info from them about the business...

I have been researching alot on internet, but nothing seams concrete enough, i want to make sure that we are well prepared to make the decision.

If anyone has even the littlest tip or idea for me it will be greatly appreciated...

Angelique

Hi Angelique

Did you buy the business? The only initial advice is to understand exactly what it is that you are buying, and therefore to conduct a thorough due diligence on this information.
You can mail me on This email address is being protected from spambots. You need JavaScript enabled to view it.
Regards
Simon

Hi Anqelique

It is vitally important that you do a tax history check on the company and ask for a tax clearance if possible. You do not want to inherit old vat and income tax issues you have resolve at your expense.

It is also important to check if they are vat registered. If they are there is a possibility of purchasing the business as a going concern and that will make a big difference to the purchase price from a cash flow perspective.

Lastly, it is important to know if you are buying a company with assets or just a list of clients from a sole proprietor. Some companies operate purely because of a relationship with the owner. If the owner leaves, so might the client.

I suggest setting up a restraint of trade with the previous owners.

You can email me at This email address is being protected from spambots. You need JavaScript enabled to view it. if you'd like more advise. I am happy to help.

Matthew

Afternoon Angelique, did you get sorted with this, if you require assistance with the company formation you can contact me at This email address is being protected from spambots. You need JavaScript enabled to view it.