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.

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.

 

• 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?