Dominic is the CEO of Lawpath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the Australian Legal Innovation Index and recently a winner of the LexisNexis 40 Under 40 (APAC).
💡Key Insights
- Before you purchase a business you should review key legal documents including contracts, licences and leases so you understand existing rights, obligations and any potential liabilities.
- Conducting financial due diligence by analysing profit and loss statements, tax records and cash flow helps you assess the true financial health of the business.
- Understanding employee arrangements, awards, contracts and entitlements helps you plan for staffing costs and compliance requirements after purchase.
- You should evaluate customer and supplier contracts to see if they are assignable and sustainable so you maintain relationships and avoid disruptions post-acquisition.
Contributor: Dooleys Lawyers and Solicitors, Sydney, NSW, Australia
March 11, 2013
In the first of this series we discussed the peace of mind having a Building Inspection gives to ensure that the property you are buying is sound or at least, you are informed of potential problems.
In this blog we look at the Pest Inspection. A Building Inspection will often go hand in hand with a Pest Inspection. Building inspections do not cover the activity of termites or other timber destroying pests. Even if the property is not located near a known problem area, you could be purchasing a home already infested with termites without being able to see evidence of them already at work on the property.
Arranging a pest inspection, like organising a Building inspection, will need to be organised as soon as possible. Pest inspectors do not necessarily need to be licensed so ensure you choose a reputable organisation who are covered by professional indemnity insurance.
A pest inspection meeting Australian Standard 4349.3, is non-invasive and will focus on damage to timber caused by pests, current and historic, including termites and borers. Fungal evidence will also be recorded. Areas difficult to access for inspection will also be noted. This may relate to the roof or sup-floor cavities.
Should you receive a pest report which highlights problems with the property, use it wisely. If the problems are minor or can be fixed without major cost, use the report to negotiate a lower price, taking the repair costs into consideration. Or, if the report highlights major problems, consult with your conveyancing lawyer and consider withdrawing from the purchase.
