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Business Purchase Costs
Stamp Duty - Estimated Stamp duty on a $500,000 business in
Stamp Duty Calculator by State
Settlement Costs - Solicitors fees generally work on a sliding scale
based on the purchase price of the business. Lease Assignment Fees - These are payable when the landlord uses a real estate agent to manage the property.
Solicitors Fees
- Where a new lease is prepared or an existing lease
assigned there may be a cost for a solicitor to draw
up the appropriate documentation.
Rent - Most commercial rents are paid monthly in advance so this
would be required at settlement.
Variable Outgoings
- Usually paid in advance and can include items such
as cleaning, common lighting, gardening, security,
management fee's.
Rates & Taxes -
Water Rates and Shire Rates may
or may not be included in the variable outgoings. As
most rates are paid from July to June the amount
will depend on when the business is purchased.
Stocktaking Fees
- Usually paid for jointly by vendor and purchaser
if a professional stock taker is utilised. Can be a
minimum charge for time or a percentage of the value
of the stock.
Neon Signage
- Many such signs are leased so there may be an
adjustment at settlement.
Yellow Pages Advertising
- Due to the cost of Yellow Pages
advertising (up to $8000) there may be some
adjustment required.
Industry Fees
- There are many fees that pertain to certain
industries. Examples are:- Association Fees,
Lotto transfer fees (based on lottery product sales) Food House/Stall Licence
fee, Liquor Licence Transfer Fee, Dangerous Goods
Licence etc.
Finance Costs -
Generally the cost of financing a business ranges
from 0.50% to 2.50% of the amount financed. These
costs are dependant on the lender and the structure of the finance
package. Mortgage Stamp Duty on a $500,000 loan by State
Stamp Duty Calculator by State
The above represents some of the most common costs
you will encounter when buying a business. Between
your Business Broker and your Advisors you
should be able to get a pretty accurate idea of the
costs involved for a particular business. Please note that this information is of a general nature only. Buyers and Sellers are urged to seek independent financial and legal advice when buying or selling a business.
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