When buying a business, a systematic approach in relation to due diligence is recommended, which is likely to include (but is not limited to) an analysis of the following matters:
Legal
- Corporate structure/shareholdings
- Corporate compliance/internal administration
- Capital Structure
- Related party transactions and indemnities
- Statutory and regulatory requirements
- Material contracts
- Warranties/service agreements
- Intellectual property/computer systems/control systems
- Other Assets
- Loans and borrowings
- Litigation and claims
- Personnel and industrial relations
- Superannuation
- Insurance
- Environmental compliance
- Stamp duty
- Trade Practices Act
Financial & accounting
- Key business issues
- Background information
- Industry, competitors and business planning
- Historical financial performance
- Financial position
- Financial prospect
- Taxation
- Other considerations
Commercial
- Background information on the Company
- Industry, competitors and government policy
- Business strategy
- Regulatory matters
- Financial history
- Financial projections
- Facilities/loans/liabilities
- Sales and distribution
- Directors, management and control
- Management and employees
- Superannuation
- Computer systems and technology
- Environment, health and safety
- Insurance
Risk management
Develop and implement a risk management program in accordnace with Australian/ New Zealand Standard AS/NZS ISO 31000:2009 Risk management – Principles and guidelines
Project management
Manage the project to acquire the business using a structured project management methodology like PRINCE2 (an acronym for PRojects IN Controlled Environments, version 2)
