Name: PCL Lawyers
Address: Level 14, 90 Collins Street, Melbourne, VIC, 3000, AU

Has Your Business Purchase Gone Wrong?

The business world can be risky. While the prospect of being your own boss is an exciting one, if you buy a business that ends up not being all it was promised to be, it can be a real liability.

If you suffer loss because the seller was not being entirely honest with you, or even honestly mistaken in his representation, you may be able to make a claim. These types of claims are usually for breach of contract and misleading and deceptive conduct.

In every business sale, the seller wants to get the best price they can. The seller presents the business to you in the best possible light. Some sellers, however, distort the accounts, turnover, profit and other financial data to create a more attractive – but inaccurate – picture of the business.

Based on incorrect information you may decide to buy the business or pay more when, if you knew the whole truth, you would have walked away or made a lower offer.

You could suffer a huge financial loss because of the seller’s deception.

Legal Protections available to Purchasers

Fortunately, there are protections under the Australian Consumer Law. There are specific laws that make it illegal for any person in trade or commerce to engage in conduct that misleads or deceives or is likely to mislead or deceive.

It doesn’t matter whether the person intended to mislead or deceive – only whether the overall impression created by that person’s conduct, is false or inaccurate.

It is possible to mislead through giving incorrect information. It is also misleading conduct where the seller may saying nothing, when it is reasonable to expect that the information would have been disclosed.

If you have purchased a business, and later found out that you were misled as to a material fact that may have impacted upon your decision to buy or how much you pay the business, you may have a claim against the seller for misleading or deceptive conduct.

There are several remedies available to you if you have suffered because of the misleading or deceptive conduct of another, including:

payment of damages to restore you to the position you were in, before the loss or damage was suffered
payment of damages to you to make amends for the harm suffered because of the acts or omissions of the other party
applying for an injunction that requires a person to do something or to refrain from doing something.

How will a lawyer help me?

In a business purchase dispute, a lawyer will look at the issues and obtain all the relevant facts. Whether you are the seller or buyer of a business, we can assist. Careful consideration is given to how the breach of contract or misleading conduct arose and how the law applies in those circumstances.

Once the initial assessment is made and the relevant facts are considered, we can determine the strength of your case and an initial estimate of your loss is quantified.

These types of disputes can be resolved in a variety of ways. Usually settling before you go to court is the best approach, if both parties can work out an appropriate settlement.

A forensic accountant will typically be engaged to assist in establishing your actual financial loss, which can provide leverage to encourage the seller to settle early. If your case is correctly and thoroughly prepared it will make it more difficult for the seller to defend.

Contact Us for Advice

If you believe you may have been the victim of misleading or deceptive conduct during the purchase of a business, you should seek legal advice as soon as possible. Getting advice early can assist in resolving the business dispute quickly and cost-effectively before the sale proceeds disappear.

There may be urgent steps that can be taken to limit your loss (particularly if the sale is not yet final). Our experienced business purchase dispute lawyers based in Melbourne, Sydney & Brisbane can help you claim back your loss.

Our litigation team have significant experience in business purchase disputes, and will push hard to help you in claiming back your loss. Simply contact us on 1300 907 335 or complete the enquiry form on this page to discuss your particular situation.

Client Testimonials What Some of Our Clients Say..

I appreciate your time and effort and thank you for your prompt response and professionalism. I would not hesitate to use your services again and refer PCL Lawyers to others.

Lisa G/Bentleigh

Thank you so much for your assistance. Should I ever have the chance to recommend you I will do so.

Morgan S / Melbourne

Out of speaking to two other lawyers you were the only one to give me any genuine advice.

Tiffany J / Melbourne

If I had of gone to another law firm that was cheaper I may have saved many thousands of dollars but as it turns out I may have lost a lot more than that upon settlement. Using a firm such as PCL lawyers I had the peace of mind that each issue as it arose was dealt with in a very matter of fact way and to the letter of the law.

Brett Wilson / Glen Waverley

PCL did a great job in advising me about my rights and protecting my name and business goodwill. I can absolutely recommend this very professional service

Branden L / Melbourne

Excellent Service. PCL Lawyers did a great job advising me about my rights and protecting my name and business goodwill. I can absolutely recommend this very professional service.

Branden L / Ravenhall

Emma and the team from PCL were nothing short of astounding whilst dealing with an unprecedented situation. The ability shown to combat opposing lawyers and still provide sound legal advice well within the interests of their client was exceptional. Will be recommending and using again.

Tom G

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