How our business purchase solicitors can help
Purchasing a business is an exciting opportunity, but it’s also a complex legal process. From negotiating terms to conducting due diligence, having the right legal support is essential to protect your investment. Our experienced business acquisition solicitors provide expert advice and guidance at every stage. Here's how Lawhive can help:
Legal advice on buying a business | Understanding the legal implications of purchasing a business is crucial. Our solicitors can support both buyers and sellers, giving independent legal advice. They can go over the risks, liabilities, contractual obligations and any other concerns you may have. |
Drafting and reviewing contracts | The sale agreement is the foundation of any business purchase. Our solicitors can help draft or review purchase agreements, ensuring they cover key terms like price, warranties and indemnities. |
Regulatory compliance | Certain industries require specific licenses or regulatory approvals. Our solicitors can help ensure compliance with industry-specific regulations from day one. |
Why choose Lawhive for your business purchase solicitor?
At Lawhive, we combine industry expertise with affordability to make legal support accessible. Here’s why clients trust us when buying a business:
Expertise in business acquisitions: Our solicitors specialise in business purchases, offering years of experience in drafting contracts, negotiating terms, and managing due diligence.
Clear and fixed pricing: We provide 100% transparent, fixed-fee pricing for our services. You’ll know exactly what you’re paying for with no hidden costs or surprises.
Affordable support: Our services are up to 50% more affordable than traditional law firms. Whether you’re buying a small business or a large enterprise, we offer high-quality support at a fraction of the cost.
Fast legal help: Time is often a critical factor in business acquisitions. We’ll connect you with a solicitor in as little as two working days, ensuring your transaction stays on track.
Who are our solicitors?
Our solicitors bring expertise, dedication, and a client-focused approach to every business purchase. Here’s why you’re in safe hands with Lawhive:
Fully qualified and regulated: All of our solicitors are regulated by the Solicitors Regulation Authority (SRA), ensuring they meet the highest professional and ethical standards.
Experienced in business transactions: Our lawyers have handled transactions across industries, from retail and hospitality to tech and manufacturing. They understand the unique challenges of buying a business and can provide tailored advice to meet your needs.
Proven track record: We work with solicitors who consistently deliver successful outcomes for clients. Positive reviews, strong negotiation skills, and attention to detail are hallmarks of our team.
Personalised support: Every business purchase is unique, and our solicitors take the time to understand your goals and concerns. They provide clear, jargon-free advice, empowering you to make informed decisions.
How much does a business buying solicitor cost?
At Lawhive, our services start at just £199 for an initial consultation with independent legal advice. However, the cost of hiring a solicitor for buying a business will vary depending on the complexity and size of the transaction. For example, full representation for someone buying a business over £100,000 can cost up to £979. We always provide a fixed-fee quote based on your specific needs, so you get clarity and no hidden costs.
What other costs are there?
In addition to solicitor fees, you might encounter other costs when buying a business. These can include:
Due diligence costs: Fees for accountants, surveyors, or industry experts conducting reviews.
Regulatory approvals: Costs for obtaining or transferring licenses and permits.
Valuation fees: Fees for assessing the business’s financial worth.
Stamp duty or taxes: Depending on the transaction type, taxes may apply to the purchase.
Our solicitors will help you anticipate and manage these costs, ensuring your budget stays on track.
What is the legal process for business acquisition?
Business acquisition can be a complex process, but we're here to make it as simple as possible. Here’s a step-by-step breakdown of the legal process involved in buying a business:
1. Initial consultation
Your solicitor will discuss your goals, the type of business you’re buying, and your preferred terms. This helps set the foundation for the transaction.
2. Due diligence
Due diligence when buying a business helps you understand the full picture. Your solicitor will review the business’s financial, legal, and operational records. They’ll identify risks, liabilities, or compliance issues and provide a detailed report to guide your decisions.
3. Drafting the sale agreement
The sale agreement outlines the terms of the purchase. Your solicitor will draft or review this document to include:
Purchase price and payment terms
Warranties, indemnities, and liabilities
Post-completion conditions, such as non-compete clauses
4. Negotiating terms
Negotiations often involve discussions around price, warranties and other key terms. Your solicitor will represent you during these negotiations to secure favourable outcomes.
5. Regulatory compliance
If the business operates in a regulated industry, your solicitor will ensure all licenses, permits and compliance requirements are addressed.
6. Signing and completion
Once all terms are agreed upon, both parties sign the sale agreement. Your solicitor will oversee the transfer of ownership, ensuring everything is legally binding and completed smoothly.
7. Post-purchase transition
After completion, your solicitor can assist with transferring contracts, employees and supplier agreements to your ownership. They’ll also provide ongoing advice to address any post-purchase issues.
Why buy a business?
Buying a business offers several advantages compared to starting a new one from scratch.
Established customer base: When you buy an existing business, you inherit its customer base, which can provide immediate revenue and a stable foundation to build on.
Proven business model: An existing business has a track record of performance. This allows you to evaluate its success, understand what works, and avoid many of the pitfalls that new businesses face.
Brand recognition: Acquiring a business with an established brand can save you the time and effort required to build brand awareness and reputation from the ground up.
Existing infrastructure: You gain access to the existing infrastructure, such as premises, equipment, and supplier relationships. This can significantly reduce the initial setup costs and operational challenges.
Immediate cash flow: Unlike a start-up, which may take time to generate revenue, an existing business usually provides immediate cash flow, enhancing financial stability from day one.
How long does it take to buy a business?
The timeline depends on the complexity of the transaction. Straightforward purchases may take a few weeks, while larger deals involving due diligence and negotiations can take several months. Below is a simple breakdown of the typical stages involved and how long each might take. However, it's important to note this is just an estimate and can vary widely depending on the circumstances.
Stage | Duration |
|---|
Initial search and research | A few weeks to several months |
Making an offer and negotiation | 1-3 months |
Due diligence | 1-3 months |
Securing financing | 1-2 months |
Legal documentation and completion | 1-3 months |
Your questions, answered
Do I need a solicitor to buy a business?
Though it's not legally required, a solicitor ensures your transaction is legally sound, minimises risks, and protects your investment. They handle due diligence, contracts, and compliance, giving you peace of mind.
How long does it take to buy a business?
The timeline depends on the complexity of the transaction. Straightforward purchases may take a few weeks, while larger deals involving due diligence and negotiations can take several months.
What is the difference between an asset purchase and a share purchase?
An asset purchase involves buying specific business assets, while a share purchase involves acquiring the entire company, including its liabilities. An asset sale solicitor can advise you on the best option for your goals.
How do you acquire a company?
Acquiring a company involves identifying potential targets, conducting due diligence to assess financials and risks, and making a non-binding offer. After deeper evaluation, the buyer and seller negotiate and finalise the purchase agreement, including price and terms. Once necessary approvals are obtained, the deal closes.
What liabilities am I assuming when I buy a business?
The liabilities you take on will depend on the way you buy the business. For example, in a share purchase, you will take on all assets and liabilities, such as those listed above. Alternatively, in an asset purchase, you may be able to avoid certain liabilities based on what assets you buy. When you buy a business, the types of liabilities you may take on include:
Existing debts, loans, and financial obligations
Outstanding tax liabilities
Existing lease agreements for premises or equipment
Contracts with suppliers and customers
Employment contracts and related liabilities;
Ongoing legal disputes or claims
Compliance issues
Product liability
What are your next steps?
If you’re ready to buy a business, Lawhive is here to help. Our corporate law solicitors provide expert guidance to ensure your transaction is smooth, secure, and legally sound. Contact us today for a free quote and take the first step toward your business ownership journey.