Legal obligations and business handover

Legal obligations

As a seller, you have certain obligations, including those to employees and potential buyers. Failure to fulfil these obligations can have legal consequences. It is a good idea to seek professional help from your lawyer or business broker during this time.

Consider the following questions about your legal obligations:

Hand over the business

After settlement, there's usually a handover process. You'll probably need to plan this process well in advance of the actual handover and maybe even in consultation with your buyer.

The terms of the handover will be stated in the contract. Business handovers often take place over a period of time.

Some of the steps involved in the handover may include:

  • introducing the buyer to important clients and suppliers
  • introducing the buyer to employees
  • providing a period of training to the buyer
  • handing over all keys, alarm codes and security devices to the buyer
  • notifying utility suppliers (telephone, electricity and gas companies)
  • notifying bank, insurer, Australia Post, industry association etc. of the change of owner.