Once the buyer and seller have agreed on a price and the basic terms of the buy-sell agreement, you're nearing the home stretch of officially owning your own business. It is now time for a formal legal agreement to be drafted and signed. You will not want to do this without the input of a lawyer, preferably a lawyer that specializes in this area, as the legal aspect can also be complicated to deal with.

We spoke to Michael Velletta, a lawyer with the Victoria, B.C.-based law firm, Gordon & Velletta, to find out what role a lawyer should play in the purchase of a business.

While you don't necessarily need a lawyer in the beginning stages of looking for a business, Velletta advises getting a lawyer early in the transaction. "You really want your lawyer involved before you sign any real estate documents or contracts. Once the contract is signed it is a binding deal."

The Buy Sell Agreement

Working with your lawyer, you have now reached the stage where the parties draft and agree upon a buy-sell contract. It's important to note that most contracts include a clause stating that the agreement is the whole agreement, so it is vital that all issues are addressed in the scope of these documents.

Striking a Deal: Negotiation Tips

Legal Considerations: the Buyer's Perspective