If you are buying or selling a business or an interest in a business, we can effect the settlement on your behalf. If you already have a business sale agreement we will arrange everything that is required to transfer ownership. If you don’t already have a business sale agreement, we can prepare one for you which is drafted specifically with your needs in mind.
For a business settlement, our professional fees (and most of your significant disbursements) are determined with reference to the purchase or sale price of your business. Our prices are equivalent to those of a business settlement agent. You can calculate those fees by clicking on the below link to the Department of Commerce's website.
If you do not have a business sale agreement and need us to draft one for you, this cost will be in addition to the cost of the settlement, as will any other documentation required such as assignments of business premises or plant, vendor finance agreements and novations of contracts.
Q: How do I appoint Ellery Brookman as my business settlement agent?
A: You should let the selling agent know that you wish to use Ellery Brookman as your business settlement agent. The selling agent will then send the business sale agreement to us and we will get in touch with you once we receive it.
If you are not dealing with a business agent, simply provide us with the business sale agreement and we can commence acting for you immediately.
Q: Do I have a choice as to who I use as my business settlement agent?
A: Most selling agents will select their choice of business settlement agent to act on your behalf. This is usually someone they have had dealings with before. If you don’t want to use whoever the selling agent selects you don’t have to. Just let them know that you wish to use Ellery Brookman.
Q: How much does it cost to do the settlement for my business sale / purchase transaction?
A: There is a scale of costs legislated for business settlement agents, and we charge in accordance with this scale. The cost of your settlement will depend on whether you are the buyer or the seller, and the value of the business.
Sometimes you may require legal assistance in the course of your business settlement. For example, you may need to know your rights in the event of a dispute or have additional documentation such as an assignment of lease or a vendor finance agreement drafted.
If you do require such legal assistance you will be charged at our normal rate for legal services and so in this situation you may receive an invoice for legal services over and above the standard fees for settlements. We will communicate with you in advance about what your legal costs are likely to be.
Q: Do I have to pay up front?
A: In most cases arrangements will be made for our fees to be either deducted from the proceeds of sale (if you are the seller) or provided by your bank at the time of settlement as an additional component of your loan if you are the buyer. Whether or not you are borrowing to purchase the business you will need to pay our invoice at the same time as settlement.
Q: I don’t have a business sale agreement. Can you help me with that?
A: It’s not uncommon for clients to require the drafting of a business sale agreement or the sale of an interest in a partnership, particularly if they are buying a business from or selling a business to a family member, friend or employer/employee. If you contact us to make an appointment we can help you prepare the paperwork you require as well as going on to effect the settlement on your behalf.