Selling your business: Five common dangers to avoid

Selling a business requires careful consideration and planning. Often, if a business doesn't perform as expected, the purchaser will look to the vendor to compensate them for the poor performance of the business.

Set out below are a number of take home points to remember when selling a business to try and minimise the risk of being sued and getting into a lengthy and expensive dispute.

1. Misleading and deceptive conduct

A claim for misleading and deceptive conduct is where a purchaser says they relied on a false representation made by the vendor (or their agent) which induced them to purchase the business.

Be very careful that the information you provide and statements you make during the lead up to the sale of business are completely accurate and not open to interpretation.