Buying or selling a business in Nowra and Wollongong: legal steps you can’t skip

Buying or selling a business is one of the biggest decisions many people in the Shoalhaven and Illawarra will make. From cafés in Nowra to trades in Wollongong, these transactions carry both opportunities and risks.

To protect yourself, it’s vital to understand the legal steps involved.

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Reviewing the lease

For most businesses, premises are critical. A lease needs to be reviewed carefully to ensure it can be transferred to the buyer. Key issues include:

The remaining term of the lease.
Renewal options.
Rent review mechanisms.
Landlord consent requirements.

If the lease is unfavourable, it can significantly reduce the value of the business.

Checking liabilities and employee entitlements

A buyer doesn’t just acquire the assets — they may also inherit liabilities. Due diligence should cover:

Outstanding debts to suppliers.
Tax obligations.
Employee entitlements such as annual leave and long service leave.

Failing to identify these can leave the buyer with unexpected costs.

Ensuring licences and permits transfer

Many local businesses operate under specific licences (such as food, liquor, or trade licences). These must be transferable, or new licences obtained. Missing this step can delay settlement or prevent the business from operating legally.

Preparing a sale of business agreement

A proper written agreement is essential. It should set out:

What is included in the sale (stock, equipment, goodwill).
The purchase price and payment structure.
Restraint of trade clauses preventing the seller from competing nearby.
Warranties from the seller about the condition of the business.

This document protects both parties and provides a clear roadmap to completion.

Completing settlement

On settlement day, the buyer pays the agreed price and takes over the business. A lawyer will usually:

Transfer the lease.
Notify employees.
Arrange for assignment of contracts.
Finalise payment adjustments (for stock, rent, utilities).

Why local legal advice matters

Every business is different, and so are the risks. Having a lawyer familiar with the Nowra, Wollongong, and wider Shoalhaven/Illawarra region ensures local leases, permits, and industry practices are properly addressed.

We help locals navigate these issues every day. contact us now.

Final thoughts

Buying or selling a business is not just a financial transaction — it’s a legal one. Careful preparation protects your investment and gives you confidence moving forward.

Call 1800 000 566 to discuss your upcoming business purchase or sale in the Shoalhaven or Illawarra. You can also book a free consultation using our online calendar, or fill in the form below.