What information is required for a Business Assessment?

The amount of quality information made available to your Business Broker will assist in setting a realistic market assessment.

To give your business the best assessment and opportunity to market it correctly you should provide the following:

Legal

  • Business structure details
  • Certificate of the Registration of a Business Name
  • A copy of your current premises lease or ownership details if freehold (including all amendments and assignments)
  • A copy of any Franchise or licensing arrangements
  • Copy of any registered trademarks, patents or other Intellectual Property
  • Copies of any hire agreements, supplier contracts, employment contracts or sub contractor agreements
  • Your Solicitors firm and their name

Financial

  • ABN
  • YTD Profit & Loss sheets
  • Previous 3 years Profit & Loss sheets (Minimum – 5 years is better)
  • Previous 3 years Balance sheets
  • Previous 3 years BAS
  • Previous 3 years Tax Returns
  • Depreciation schedule
  • List of Aged debtors
  • What is the trend within your financials?
  • Can you explain any extraordinary movements?
  • Monthly Sales figures (excluding GST)
  • Copy of latest rental statement
  • Your Accountants firm and their name

 Human Resources

  • Full details of your staff and subcontractors
    • Include position, weekly hours, rate of pay, time with you etc
  • Copy of your latest staff roster
  • Owners PAYG payment summaries (Minimum of 3 years)

Plant & Equipment

  • Detailed list of plant and equipment, fixtures and fittings including unregistered or registered vehicles to be used in the business
  • Is any of this plant encumbered?
    • Are you paying out the lease/finance upon sale or do the Buyers take over the payments?
    • Identify each items lease, hired or rented equipment
  • Department of Transport registration papers
  • What is the current market value of these items?

A History of your Business

  • How long have you been in this business?
  • When was it originally started?
  • How was it started? Meeting a demand – passion or hobby
  • Trading Days?
  • Trading Hours?

Products & Services

  • Products & Services offered currently?
  • What is the split-up between Sales and Service?
  • What products or services could be incorporated to compliment the existing range?
  • Who are you competitors?  Where are they based?
  • Who are your customers?
  • Why do customers come to you?

Trends

  • Explain what the business trends are. e.g. higher sales periods due to special occasions etc
  • Explain what the local community area and growth is

Marketing

  • Website domain details
  • What marketing do you have in place?
  • What customer database do you have in place?
  • What shop and street signage do you have?
  • Do you have quality images of your business inside and out?

Who is the Ideal Buyer for Your Business?

  • Identify who would be the most suited buyer for your business. e.g. Husband and wife team; 2 man team – one in sales, one in delivery
  • What their passion should be
  • What skills set should they have or be willing to learn?

What do you offer to the Ideal Buyer?

  • Time in the business training after settlement
  • Vendor Finance
  • Restriction of trade clause – years and kilometres based

Sale Price

  • What is your realistic idea of a fair selling price? (excluding P&M and Stock)
  • If you were buying this business where would you look for information?

 All of this information creates a picture of your business.  Add anything else you consider important for a Buyer to consider your business.

This may mean mentioning Parking, nearby stores/shopping centre, new residential buildings or University etc.