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.