Services · Business Due Diligence
Buying a business?Look before you leap.
Independent business due diligence before you commit.
No jargon. No obligation. No hard sell.
An independent set of eyes before you sign
Buying a business, or buying into one, is one of the biggest financial decisions you’ll make. The seller knows the business inside out. The broker is paid when the deal settles. And by the time you’re serious about a business, it’s easy for excitement to get ahead of the homework.
Our business due diligence gives you an independent view of the business you’re thinking of buying — or the start-up plan you’re about to put your savings into — before you part with your money.
A due diligence report that shows the opportunities as well as the risks, so you can decide with your eyes open and negotiate from a stronger position.
What our due diligence covers
- A full financial review, including the asking price
- Sales trends and where the income really comes from
- How much relies on a handful of customers
- Margins, overheads and true owner earnings
- Key staff, and what happens when the owner leaves
- Systems, stock and equipment
- Leases, supplier terms and commitments
- Opportunities to grow after you buy
- Areas of risk and concern
- The right structure before and after purchase
We work alongside your accountant and solicitor, who look after the tax and legal side of the purchase. See also Business Structuring.
How it works
A conversation
Tell us about the business you’re looking at, what you know so far and when you need to decide.
We review the information
Financials, the information memorandum, leases and anything else the seller provides — and the questions it raises.
Your due diligence report
Opportunities, risks and concerns, in plain English, with the questions to put to the seller before you sign.
You decide
Buy, negotiate or walk away — with the full picture in front of you.
Starting a business instead?
We also review start-up business plans before you commit. We test the sales assumptions, the costs and the cashflow, and tell you honestly whether the numbers stack up — and what would make them stronger. Cashflow is where most new businesses come unstuck, so we look at it closely. See Cashflow Analysis.
Never let emotion do the homework.
It’s natural to fall for a business. That’s exactly when you need someone with no stake in the deal to check the numbers. Garry has been doing this for more than 40 years.
A typical due diligence scenario
A couple had found a well-established retail business for sale and were ready to use their savings and a business loan to buy it. The information memorandum looked strong, and the seller was keen to settle quickly.
Our due diligence showed that a large share of sales came from a small number of trade customers who dealt personally with the owner, and that the reported profit didn’t include a market wage for the hours the owner worked. We gave them a list of questions to put to the seller and the areas to discuss with their accountant and solicitor.
A decision made with the full picture — and a stronger position to negotiate price and handover terms. A typical scenario, based on the kind of businesses we work with. Details are illustrative.
Business due diligence: common questions
What is business due diligence?
Business due diligence is an independent check of a business before you buy it or invest in it. It tests whether the numbers, customers, staff, systems and commitments are what they appear to be, and highlights the opportunities and risks so you can decide — and negotiate — with the full picture.
How long does due diligence take?
It depends on the size of the business and how quickly the seller provides information. We agree a timeframe with you up front and work to your deadline wherever we can. Allow time before you sign — don’t let a seller’s timetable rush the homework.
What information do I need from the seller?
Typically at least three years of financial statements, recent BAS, the information memorandum, lease and supplier agreements, a list of staff and their roles, and details of major customers. We’ll give you a checklist and tell you what’s missing.
Do you replace my accountant or solicitor?
No. We work alongside them. Your accountant advises on tax and your solicitor on the contract and legal matters. We focus on how the business really performs and what it will be like to own and run.
Can you review a start-up business plan?
Yes. We test the sales assumptions, costs and cashflow in your plan and tell you honestly whether the numbers stack up — and what would make them stronger.
Part of the Business Review Programme
We work with your accountant or finance broker. Whatever the service, we work alongside the advisers you already trust, so our advice and theirs point in the same direction. We share what we find, with your permission, and keep everyone on the same page.
Business due diligence is one of the areas we cover in the Business Review Programme, which looks at your Numbers, Systems and Marketing together. If you want the full picture, start there. If you only need help with this one area, we can do that on its own.
See all our business consulting services →
