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Buying a Business ?

Some Questions to ask !!!!

 

Planning your Business Purchase required a certain amount of due diligence.

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Plan

 

 

 

 

 

 

 

 

 

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.

Employees.

  • 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.

 

Legal

 

 

 

 

 

 

 

Legal.

 

  • 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?

 

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