Buying a Business
Let’s face it, most people have never sold or bought a business in their lifetime. It can be a daunting experience. A good broker can advise and help with the process, including finance arrangements, legal work and timing of the purchase to bring a happy and exciting conclusion for all.
Understanding the role of a business broker
The basic job of a business broker is to find buyers for businesses that are for sale and to put deals together. Many brokers will tell you that finding the buyers is the easy part and putting the deal together is the hard part. Let’s face it, most of us have never sold or bought even one business in our lifetime. An individual with expertise in the process can be a very important asset to bringing the process to a successful conclusion. A good broker can be an invaluable asset in selling a business.
A business broker should have all the appropriate forms such as confidentiality agreements, offer to purchase forms etc. This could save a good amount of money in legal fees if the alternative is to have your lawyer draw up the forms.
A due diligence checklist for purchasers may include the following;
- Balance sheet
- Profit and loss statement
- Verify the “Ad backs”
- Contingent liabilities
- Bank statements
- Unpaid taxes eg; PAYG, GST, income tax, land tax, payroll tax, superannuation for staff, hire purchase or lease payments.