When a person buys a business, they have to be especially careful. Most of the value of a business is often in what is known as “goodwill”. A number of things make up goodwill – the customer base, the reputation or brand of the business – and without this an existing business will be practically worthless. A lot of the purchase price of a business is frequently apportioned to the goodwill.
So it is invariably in a purchaser’s interest to have a professionally drafted agreement to make sure they get exactly what they thought they bargained for.
A key ingredient of such an agreement will be in what are known as the warranties. Purchasers will want to be confident that the seller will not set up a competitor immediately on completion, wiping out much of that goodwill.
Our commercial partners Tim and Sarah Napier have enormous experience in putting together bespoke agreements which cover everything that is needed. They will make sure that the purchase goes through with the rights and obligations of the parties safeguarded as well as the law allows.
A number of different legal questions arise in the course of buying and selling a business.