Buying a Business – What to Consider
- Conduct proper research: analyse financial records, debt checks, customer and supplier contracts, tax compliance, records of employees, the corporate structure of the business seller, records of the business, business assets, and legal adherence.
- Assess whether buying the business is the best option for you: consider why you want to purchase the business, review the business purchase with our team, and compare it to startup from scratch.
- Be aware of sales and payroll taxes: ensure the seller is up to date with their taxes and request a clearance letter from the state tax authority.
- Seek professional advice: consult with an accountant and a lawyer to understand the legal and taxation implications of buying a business.
- Review the lease: determine whether you can assume the seller’s lease and whether the property where the business is currently located is suitable for your needs.
Financial and Business Information Required from the Vendor or Business Broker
- Financial records, including income statement, balance sheet, and cash flow statement
- Debt information, including outstanding loans and credit lines
- Customer and supplier contracts
- Tax compliance, including sales and payroll taxes
- Employee records, including payroll information and employee benefits
- The corporate structure of the business
- Business assets and legal adherence
- Business plan and growth potential
- Bank loan documents and other financial documents
Contact us at Bottrell Business Consultants Pty Ltd for assistance in reviewing and analysing the financial and business information required for purchasing a business. With our expertise in accounting, tax, business advisory, and financial planning, we will ensure that your business purchase is a success. Contact us now at email@example.com to schedule an initial chat and see what the next steps are. Our office locations are in Newcastle (45 Hunter Street) and Maitland (93 Lawes Street, East Maitland)