Buy­ing and sell­ing a busi­ness in the snow

Alpine News - - Property - BY DAN FLYNN & EMMA EINSIEDEL Tress Cox Lawyers

SNOW Busi­ness is an im­por­tant part of the Vic­to­rian econ­omy, with the 2014 win­ter snow sea­son contributing $668 mil­lion, with 775,469 vis­i­tors across all re­sorts.

Ac­cord­ing to the Alpine Re­sorts Co­or­di­nat­ing Coun­cil, vis­i­tor num­bers in­creased on av­er­age by 32 per cent com­pared to the 2013 sea­son.

Buy­ing a busi­ness in an alpine en­vi­ron­ment can be stim­u­lat­ing, re­ward­ing and the ad­van­tages of run­ning a snow busi­ness are of­ten per­sonal, strate­gic or a step in a cer­tain di­rec­tion.

When you buy a busi­ness, you are buy­ing the good­will, the plant and equip­ment and the stock. As part of the sale, there are var­i­ous trans­fers to be ar­ranged, de­pend­ing on the busi­ness.

For ex­am­ple, for a cafe or restau­rant, you need a trans­fer of food premises reg­is­tra­tion and liquor li­cence.

For a re­tail busi­ness, you need to or­gan­ise trad­ing ac­counts with sup­pli­ers. For other busi­nesses, you may need to trans­fer statu­tory li­cences or ap­provals.

There are also as­pects such as trans­fer of em­ploy­ees, trans­fer of busi­ness name, and in some cases trans­fer of book­ings, de­posits and/or con­tracts held.

Each busi­ness is unique and care­ful thought must be given to the trans­ac­tion to en­sure that the buyer re­ceives good ti­tle to the busi­ness and that the par­ties are not left with un­forseen costs or ex­po­sure af­ter set­tle­ment.

One thing that most sale and pur­chase of snow busi­nesses have in com­mon is the trans­fer of premises.

In an alpine en­vi­ron­ment, as own­er­ship of a build­ing is usu­ally by way of lease, the busi­ness owner usu­ally holds a re­tail sub-lease (or sub-sub­lease) of the premises.

The busi­ness owner will need to ob­tain the land­lord’s con­sent to any trans­fer of the right to oc­cupy the premises.

Out­go­ings payable un­der a re­tail sub­lease would usu­ally in­clude a pro­por­tion of the head lease charges on the lease. In ad­di­tion, there may be other con­sid­er­a­tions to con­sider on trans­fer, such as com­pli­ance with CFA reg­u­la­tions.

If you are buy­ing into, or con­sid­er­ing buy­ing into an alpine busi­ness, it is im­por­tant that the dif­fer­ent re­quire­ments of alpine ar­range­ments are known and ex­plained to you.

If you want to sell your alpine busi­ness, or are look­ing to buy an alpine busi­ness, it is rec­om­mended that you seek ad­vice from lawyers who un­der­stand busi­ness and leas­ing and in par­tic­u­lar, the dif­fer­ent re­quire­ments of snow busi­nesses and alpine leas­ing.

PHOTO: Tress Cox lawyers

SNOW BUSI­NESS: Hav­ing the right ad­vice is cru­cial when buy­ing in an alpine en­vi­ron­ment.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.