Buying a business is a serious undertaking and careful panning in terms of due diligence and financial budgeting are critical to insure you make the right decision – for you!

Due diligence: What do I look for when buying a business?

• The owner’s reputation in the market place
• Historical trading information and financial reports
• The lease terms, any local government council permits or licences that may be required
• Obtain a full equipment inventory
• View the staff rosters and corresponding payroll. Confirm any hours that the vendor may be working in the business and identify any potential addbacks for management wages or vendor salaries.
• Will you be able to increase sales with current resources?
• Does the Contract of Sale include a restraint of trade clause binding the vendor and its directors to not compete for a period of time and within a certain distance of the business?
• Obtain legal representation from a qualified practitioner for the Contract of Sale, leases and other ancillary documentation.