A question commonly asked by those looking to sell a commercial property or business is “what is good will?”
In simple and general terms, the goodwill of a business is what attracts customers and clients to the business. It is the value of the business not connected with the value of the assets of the business. On the other hand, a Conveyancing Solicitor or Commercial Lawyer will tell you that the answer to the question “what is goodwill?” is that it is a type of intangible personal property intrinsically linked to a business. When you sell a business, you will generally sell the business assets, stock, plant and equipment and the goodwill. As such, the proper valuation of the goodwill of your business is vital. A Commercial Lawyer can help you arrange this.
There are a number of elements that jointly make up the goodwill of a business. These may include things like:-
- Patents and trademarks that are attached to the business
- The business name, email addresses and website
- Clientele, contacts and distributors
In most circumstances, the purchaser’s Conveyancing Solicitor or Commercial Lawyer will request that certain clauses are included into the contract in order to protect the goodwill vested in the business. For example, the purchaser might request that the contract prohibits the vendor from:-
- Conducting the business in a manner that is destructive to the reputation of the business (between exchange and prior to settlement)
- Making false or degrading assertions about the purchaser to potential clients or customers
- Conducting a similar business within close proximity and within a set period of time
When acting for a Vendor it is important to ensure that these clauses and conditions are not overly restrictive or overbearing.
For more information and quality and competitive legal advice, contact our office and arrange an appointment with an experienced Commercial Lawyer.
Our Commercial Lawyers work in cohort with Chartered Accountants. With a multi-disciplinary team offering a total service, Navado provides its clients with a unique chance to take advantage of expertise and skill across an array of professional areas. For more information, explore our website or contact our office on (02) 9233 4048.
- We have been operating since 2001
- Fixed Fees for a commercial sale
- We have a 'can do culture' - we deliver
- We promptly return phone calls and emails
- We have regular repeat business
- Our staff attend Sydney settlemements
- Our staff are humble and hard working
- Senior staff hold Honours Law degrees
- Senior staff personally oversee your file
- We have state of the art technology
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
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Tags: conveyancing, commercial sale
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If you are buying or selling a property and require Conveyancing services, you should make an appointment to see one of our Conveyancing Lawyers in one of the following locations:
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