Between the unconditional date and settlement, both parties along with their respective Solicitors and Accountants attend to the final details and legalities relating to the sale. The checklist on the following page highlights these issues and indicates generally whose responsibility the issue is – seller or buyer. There are three main areas of focus at settlement time; the stocktake, verifying the Plant and Equipment list and attending to the period of sellers assistance. Stocktake A stocktake is normally conducted by both the buyer and seller together. Sometimes this is not preferred or appropriate and in such cases a valuer acceptable to both parties is appointed to compete the task. The stock level is determined at cost; the final value must fit within the stock variance allowance agreed in the sale and purchase agreement. The settlement sum will be adjusted depending on the value of stock determined at the stocktake. Plant and Equipment The Plant and Equipment as listed will be checked off and inspected for good operational order. Any variances from the agreement could also be reflected in the settlement figure, for instance if a certain item of plant was destroyed and not present on the possession date, the value of this item could reasonably be deducted from the final settlement sum. Sellers Assistance This is normally for a period of 10- 30 working days, but the length of time required does vary depending upon the complexity of the business. The first two weeks will often require a full time involvement. The seller will often agree to consult informally or formally for financial consideration for an agreed period after the 2-6 week period of assistance. This requirement, if applicable, also varies depending upon the complexity of the business. POSSESSION AND SETTLEMENT PERIOD eieio.co.nz
RkJQdWJsaXNoZXIy MTI3OTc=