We are in the middle of negotiating one unit sale agreement, one unit and share sale agreement, two other share sale agreements, and there is another in the offing. It seems a lot of people are buying into and exiting businesses at the moment.
They are popular ways to take over a business without incurring exorbitant transfer duty, but you need to be careful about skeletons in the closet. Among other traps, incoming directors can be liable for unpaid ATO liabilities, so it’s best to do very thorough due diligence and have extensive warranties backed by assets, in case of the need to take action for their breach, or be one of the existing shareholders with a good handle on all the finances already.
If you found this article helpful, please consider providing a Google Review and/or like us on LinkedIn. For help and advice on drafting share and unit sale agreements, see Michael Paterson & Associates (08) 9443 5383 | www.patersons.com.au
(08) 9443 5383
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