This document is a due diligence checklist. It can be used in relation to sale of business by way of a purchase of assets, shares and units in a trust, provided the necessary amendments are made.  It sets out the information that a purchaser may consider requesting from the vendor, or that a vendor may wish to put into a due diligence data room.  

This precedent sets out standard materials that a party may wish to consider. However, practitioners will need to consider the specific functions of the business, company or trust that their clients are purchasing (or selling), to determine whether additional materials will need to be included in this list.

Using this precedent

It is intended that this precedent will serve as a guide to the sorts of matters which will need to be considered by parties and their advisers at the various stages of the transaction. It considers the various matters that may need to be included in the relevant contract for sale of business.

This precedent should not be used without careful consideration and, where appropriate, alteration. Revenue implications (especially stamp duty and income tax) will affect a large number of aspects of the transaction, and these should be the subject of separate consideration in each case.

This document has been authored for LexisNexis by Rosalyn Gladwin, Principal, Gladwin Legal.

This document is prepared with the assistance of Specialist Editor Murray Landis, Partner, K&L Gates.