Buying a Business ?
Some Questions to ask !!!!
Planning your Business Purchase required a certain amount of due diligence.
Some relevant Questions to be answered !
- Why is the business for sale?
- History of the business.
- How long has the business been operating?
- How was the business started?
- Has the business changed its goals?
- What is the business’s reputation?
- What is the condition of the facilities?
- Review of the last 3 years financials including the BAS statements.
- Request to the see the uptodate Debtors and Creditors.
- Negotiate a suitable transition and training period and perhaps a trial period.
- Has the business a history of stable employees?
- Customer loyalty and data base.
- Suppliers longevity with the business.
- What are the job descriptions of all staff?
- Are there any specialist skills required to run the business?
- Is the business reliant on a few people?
- What are employee pay rates?
- How is staff morale?
- Outstanding employee entitlements.
- Holiday Pay and superannuation payments.
- Is the business involved in any current or pending legal proceedings?
- Does the business comply with environmental and workplace health and safety laws?
- Does the business have any long-term commercial contracts?
- How long are these valid for and how much are they worth?
- Does the business have necessary licences, permits and registration?
- What lease arrangements does the business have?