Fire walls, acquisitions and risk

I’ve learned that you cannot rent out upstairs and downstairs separately, except with 1 hour fire wall between. This can be added, for a price. But, if the roof height is just enough without the fire wall, it may be too shy with it. So, a house that looks like it has potential for dual living, might not be so suitable when you get into the specifics. If you are new to buying houses to convert into premises fit for dual living, you either take a gamble with the things you don’t know, or engage an experienced professional to give you the information you require to make an informed decision. Worst case, you buy a house and if it isn’t fit for purpose, you sell it and hope it has appreciated enough to cover your stamp duty and real estate fees so you break even. With the market as it is right now, that seems a fairly safe bet.

But with buying a business, the risk is greater. It might look like it has potential, but are all the ducks in a row? Have all the trade marks been registered? Are you acquiring exclusive rights in the name? Can you stop others from using it? Or, are you about to receive a cease and desist letter in the mail yourself? Just as when buying a house, when buying a business, you either take the risk, or you engage a trade marks attorney to help you make an informed decision. But, if you take the risk, it’s important to note… A business isn’t a tangible asset, like a house, that you can easily offload. If you buy it and then find out there are problems with the IP, you might try and sell the business. But, questions will be raised on why you are trying to flip it.

It’s not worth the risk. Any time you are buying a business, come to Tarr Law and get proper advice on whether the trade marks are protected. That way, when you buy the business, you’ll buy it with peace of mind.

The most successful clients we have don’t know everything themselves, but they know to get good advice from people they trust, thereby avoiding errors and propelling their business and financial success forward.