ABSTRACT
This chapter presents the issues that can arise upon the purchase or sale of a business and highlights the common pitfalls that may occur in the process. If entrepreneurs are buying an existing business, the retiring proprietor will have obtained a valuation for the business being sold. As a buyer, they should ensure that the valuation has been prepared by a professional valuer and that the state of the business equipment and the income the business generates has been taken into account. Businesses that are registered are required to charge Value Added Tax on their income and in some cases that can include the proceeds of the sale of the business. The sales of businesses affected by the rules are typically those where a business is sold as a 'going concern' or where the sale is part of a business that can be operated separately.
