Step by step Pub legal buying process
You need to find your target bar or pub and agree a deal price and structure which is usually summarised in a Heads of Terms or Memorandum of Sale. Although usually expressed to be not legally binding, we believe that there is significant value to be gained when buying a pub by using a pub purchase solicitor specialist to structure your purchase deal memo or to review the one provided by the agent. Make sure you appoint, or at least talk to, a solicitor before you sign even a non-binding heads of terms or memo of sale.
Due diligence – this is the investigatory stage of the process where, as a prudent buyer, you seek to establish what you are buying. Clever buyers will work closely with their legal advisers at this stage to ask the right questions of the seller and review the business data and documentation. The experienced pub solicitor will manage this process efficiently and to your advantage. Truelegal makes full use of virtual datarooms for due diligence which greatly enhances speed, transparency, efficiency and traceability. We have found that pub buyers using our buying process then have the full business legal, financial and staff documentation efficiently stored electronically for future use when running their pub or bar.
The business purchase or sale agreement is the key document, together with the Lease and Lease Transfer (Licence to Assign) documentation. Your solicitor needs to make sure that the right warranties and indemnities are included to protect your investment. It is essential you understand what you are agreeing to, particularly in relation to the lease obligations (for example, repairing obligations).
Alongside the main agreements there will be other issues where advice is required. A prime example is dealing with employed and temporary staff. Where you are buying the business goodwill, you will need to become very familiar with TUPE legislation which has a number of pitfalls for ill-advised buyers. Another area where pub buyers often come unstuck is underestimating the process of getting consent from landlords to the transfer of the property leases, equipment leases or bank loans and overdrafts. If you want to avoid frustrating delays with your purchase, it’s important to prioritise the obtaining of such consents at an early stage, and we can help you do that.
Without a Premises Licence and a Designated Premises Supervisor in place you can’t open the door. We’ll make sure you have the right licence in time so that you can be appointed as DPS from day one.
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The sooner we become involved in the process of helping you to buy your Pub or Bar business the more likely it is that your purchase will be successful, so please contact us today.
Our full contact details can be found on our Contact Us page.
We look forward to hearing from you.