Frequently Asked Questions
Below are some of the more common questions we get asked about by our clients. Can’t find something? Contact Us!
Unlike accountants, selling and valuing small businesses is all that we do. By specialising in this area we know the market, we have the sales evidence necessary to provide market-based valuations, are we are able to provide our clients with a fast and professional service.
Our fees are low because we have lower overheads. We offer fixed-price valuation engagements where you agree to the terms before we start – so you know exactly what the cot will be, and what we will do.
We always visit the business and always sit with you to discuss the valuation before we sign-off.
We use our experience, sales data, market comparisons with other businesses and apply multiple valuation techniques.
A qualified Accountant can offer an unbiased opinion and assessment of the business. Accountants are experts at looking a set of financial figures and working out just how healthy a particular business is.
It is normal practice to engage an accountant to conduct ‘due diligence’ on the business that you are looking to acquire. This can be conducted either prior to signing a contract – or after the contract has been signed.
Getting an Accountant’s opinion is a vital step that should not be overlooked.
We will work with your advisors to collate all of the information that we require.
- Trading Statements for the past 3 years
- Profit & Loss Statements for the past 3 years
- Balance Sheets for the past 3 years
- Tax Returns for the past 3 years (if available)
- A list of plant & equipment
- Copies of all lease agreements (including equipment leases)
- A staff roster, and details of entitlements
- A completed disclosure form – including stockholding, debtor and creditor ledgers
- Any interim information for the current year.
- Business Plans, budgets or forecasts for upcoming year (if available)
You should be able to obtain the required information from your Accountant, or your bookkeeper. If required, we can contact your Accountant on your behalf, to obtain the information. Usually we will visit you at the business and discuss the information that we require.
IF YOU ARE BUYING A BUSINESS
Because we are business brokers we may not be able to assist you – as there may be a conflict of interest.
If you are purchasing the business through another business broker the business broker should be able to provide the documents that are needed.
If you are purchasing directly from the current business owner (the vendor) they should have the required documents available, or at least be able to obtain them from their Accountant.