Buying a business in Australia? Before you sign the contract, make sure you know what you're actually buying. Use this practical checklist to organise the information your accountant, lawyer and finance broker will need.
A business can look profitable from the outside and still carry financial, legal, operational or contractual risks. Due diligence helps you understand the business before you commit your money — and can also help your finance team understand the transaction.
The Australian Government recommends researching an existing business before buying it and reviewing its financial records, operations and legal documents. Due diligence can help identify risks before you commit to the purchase.
The goal is to understand the business well enough to decide whether the price, structure, risks and funding requirements make sense for you.
We've organised the checklist around the information a buyer should gather before completing an acquisition. You can work through each section with your accountant, lawyer and finance broker.
The Australian Government's business.gov.au guidance recommends checking the business's records, plans and operations before buying. It identifies financial records, legal documents, licences, contracts, assets, inventory and liabilities as areas buyers should investigate.
Official Australian Government guidance covering research, valuation, due diligence, financial records, contracts, licences, assets and liabilities.
Read business.gov.au's guidance →The ATO provides guidance around commercial and tax due diligence when acquiring a business and identifying potential tax risks.
Read ATO guidance →ASIC maintains company and business name registers that can help buyers investigate the legal identity and registration information associated with a business.
Visit ASIC →
An accountant can help assess financial and tax information.
A lawyer can review the contract, legal obligations and
transaction structure. A finance broker can assess the
funding requirements and help determine how lenders may view
the acquisition.
Don't rely on a checklist alone to make an acquisition
decision. Use it to make sure the right questions are being
asked and the right documents are being collected.
Download the free ProBiz Finance Business Acquisition Due Diligence Checklist and keep it with your acquisition documents. Use it to request information from the seller and keep track of what your professional advisers need.
↓ Download Free Due Diligence Checklist PDF · Free resource · Prepared by ProBiz FinanceDue diligence is only one part of the acquisition process. Once you understand the business, the next step is working out how the purchase can be structured and funded.
Understand how finance can be structured to purchase an existing business, franchise or practice.
Explore Acquisition Finance →Explore key considerations when evaluating an existing Australian business before making an offer.
Explore Buying a Business →Explore business finance options that may be relevant to an acquisition or business growth.
Explore Business Loans →Consider the working capital you may need after settlement to keep the acquired business operating.
Explore Working Capital →Explore finance options for equipment, vehicles and machinery required by the business.
Explore Asset Finance →Buying a business with commercial premises? Explore funding options for the property component of your acquisition.
Explore Commercial Property →Before buying an Australian business, consider its financial performance, legal structure, customers, employees, assets, contracts, operational dependencies and future funding needs. Explore our Buying a Business resources to understand the broader acquisition process.
Due diligence tells you what you're buying. Finance assessment helps you understand how the transaction could potentially be funded. If you're considering buying a business, talk to ProBiz Finance before you commit to the purchase.
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