What is 'due diligence' when buying a business?
Due diligence is ‘the process of acquiring objective and reliable information on a … company as...
We’re business transaction specialists and have helped clients buy and sell businesses in a wide range of industry sectors and price ranges, from $500,000 to $25 million.
Due diligence involves identifying and assessing risks associated with a prospective business purchase, in order to make an informed decision as to whether you will proceed with the transaction and, if so, on what terms.
We provide thorough, independent due diligence for business-buying clients, and assist sellers with vendor due diligence, which involves being prepared with likely information requirements prior to initiating a sale process.
If you don’t feel comfortable asking for sensitive information, engage an experienced advisor to do it for you – you need that information.
This may include: property/premises; P&E; inventory; systems and processes; employees; customers and market segments; products and services; suppliers; business IP and other assets; market trends and issues; contracts and agreements.
This may include: financial performance; future maintainable earnings (FME); debtors; creditors; work in progress; salaries and wages; employee entitlements; guarantees and bonds; pre-payments; taxation and superannuation obligations.
This may include: insurance, claims and warranties; patents, trademarks and business names; ATO and other statutory audits, risks and payments; unrealised legal claims/risks; transfer of employee entitlements; contract terms, conditions including vendor warranties and indemnities.
“Denny’s didn't have the information at hand, or formal reporting structures in place, so that made [due diligence] difficult and time-consuming, but James just pressed on. He was very polite and very professional in the way he gathered the information – he doesn’t come out with a big stick – but he just kept pressing on until the information was provided.”
Craig Doorey, Director and Head of Accounting, Sales and Engineering, Satake Australia
Services provided: business valuation; purchase negotiations; business purchase due diligence
The JPAbusiness team has been helping clients buy and sell businesses for over 20 years.
We help our clients plan and gather robust information on potential business purchases in order to ensure the best match with their acquisition requirements.
A business sale doesn’t just happen – they are planned and deliberate, and there are several critical components that go into achieving success.
In this blog we’re sharing information and case studies first presented by Watson Mangioni lawyers...
Due diligence is ‘the process of acquiring objective and reliable information on a … company as...