Home – New Forums Starting your journey buying a business that does not have a business name

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  • #981940
    BYH
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    • Total posts: 4
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    Hi All,

    I’m in the process of buying a business, but the business had moved buildings and didn’t get the reminder regarding the renewal of its business name. Since ASIC has now gone nationwide, this name can no longer be re-registered as it was also registered in a different state and now you cannot have two of the same name in the national database.

    My question is: can they still sell it without a business name? I’m happy not to have the business name, but is it still selling a business if they are not that actual name anymore

    Kind regards,

    Paul.

    #1133828
    JacquiPryor
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    Hi Paul,

    I would suggest yes – but, any sale agreement cannot include the name obviously.
    So, they could sell essentially sell you other assets of the business – files, stock, work in progress, equipment etc etc… Many things that form a business.

    If they are wishing to include goodwill attached to the name, this could be tricky if it’s no longer possible to use the name, and, would likely reduce the purchase price. If they happen to have registered that business name as a trademark, then, that would still be an asset they are entitled to sell with a value attached.

    #1133829
    Chris – Marketing
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    Yeah I’m with Jacqui on this but emphasise that you will have to relaunch another brand. Branding change costs. Signage, letter head, packaging, yellow pages, and advertising letting everyone know your knew brand. No good only doing a half job. Do it right to give your business the best chance of success.

    cheers

    #1133830
    Canaanl – Business broker
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    Hi,

    I think it depends on what type of business you are buying and whether you need the goodwill of the name.

    You probably can negotiate a better price since it doesn’t have the goodwill that comes with the name.

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