Information to obtain when buying a business

Compiling a checklist of important documents is essential. It should include some or all of the following:

  • Profit and Loss Statements for the past three years
  • ‘Interim’ Profit and Loss Statement for the current financial year to date
  • Balance Sheets for the past three years
  • ‘Interim’ Balance Sheet for the current financial year to date
  • Tax returns for the past three years
  • Stock Listing (showing age and value of stock)
  • Depreciation schedule showing plant and equipment included in the sale
  • Employment contracts for all staff
  • Contracts for all suppliers
  • Lease agreements (for business premises and any equipment under lease)
  • Customer list

Please note this list of questions is provided as a guide only and should not be considered as a complete or absolute list due to the wide variety of business types and structures.

An independent business valuation compiled by a professional can help. Contact BIZVAL or order your business valuation today.

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