I am looking at purchasing a hosting company, and i want to make sure everything is above board, and legally everything is done correctly. What would be the processes I would need to take to do this.

That's like saying you want to build a house, and what do I need to do to make that happen. :)

Depending on the size of the acquistion, you might or might not need your lawyer involved. If the acquisition is small, then it's probably something you could work out with the other party. If you're investing big bucks, then you obviously have legal counsel present.

How much money you willing to spend ? Give estimate for say 1 client how much u will pay?

The purchase price will be between $35000 - $40000, so it's not small bucks. Now the question is where do you find legal help for something like this. In your own country (Australia) or in the country where the owner of the business is?

hcubed,
Where are you located and where is your company registered? Do you have a lawyer to draw up terms of the sale, etc.. for you?

-Steven

I am located in Australia, and the company is in Europe. Thats what I am looking for is a lawyer and an accountant to check and go over everything for me before I go ahead with this purchase.

I think you should check their physical location where they are incorporated with, You should also make sure about their liabilities, past history and present client before making a final deal.

The purchase price will be between $35000 - $40000, so it's not small bucks. Now the question is where do you find legal help for something like this. In your own country (Australia) or in the country where the owner of the business is?

Well, $35k to $40k is about 2 hours of "lawyer time" for a company like 1and1... so "small bucks" is relative. :)

I recommend discussing your situation with a "technology lawyer" in YOUR area first. This will give you some good guidance and general recommendations to follow. It's likely they will also be able to give you some standard forms you can modify and use, etc...

I am located in Australia, and the company is in Europe.

In this case, your contract must account for the fact that "their" laws might be different then yours. Not to mention that if "things go bad" and you actually needed to "enforce" the contract... it will probably cost you a lot more then $40k.

In your situation, I'd say that any contract you sign with the seller is more for false sense of security. (ie: To scare the seller into behaving.)

Good luck!

Thats what I think also.

Be sure that you know what you're doing before purchasing this company.

You definitely need to contact a lawyer to get this thing started!