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Guides to buying and selling a business
Plain-English guides to buying, selling, valuing and financing a small business in Australia. They explain how things usually work and link to the official guidance; they are not legal, tax or financial advice.
Selling a business
Getting ready, setting a price, finding a buyer and getting to settlement.
- How to sell a business in Australia: from first steps to settlementThe steps most owners go through to sell a small business, what to prepare before you list, and what happens between signing a contract and handing over the keys.5 minute read
- Preparing a business for sale: what to fix in the year before you listWhat to fix in the year before you sell a small business, from the financial records and add-backs to the lease, staff pay, equipment, online assets and tax.6 minute read
- Keeping a business sale confidential: how to market a business without telling everyoneHow to market a business for sale without staff, customers, suppliers or competitors finding out too early, from the listing and NDAs to site visits and privacy.6 minute read
- Selling through a broker or privately: how to decide, and what to checkHow to choose between a business broker and a private sale, what an agency agreement covers, how brokers are paid and licensed, and what to check before you sign.6 minute read
Buying a business
Finding the right business, checking it properly and making an offer.
- Due diligence when buying a business: what to check before you commitHow to check a business's finances, lease, legal position, staff and equipment before you buy, and the warning signs that should make you slow down.4 minute read
- How to read a business-for-sale listing: what the figures and terms really meanWhat the asking price, turnover, profit, multiple, lease and other details on a business-for-sale listing mean, and the questions each one should prompt before you enquire.6 minute read
- Questions to ask when buying a business: what to ask the seller, and whenThe questions to ask a seller at each stage of buying a business, from your first enquiry to your offer, and how to tell whether the answers hold up.6 minute read
- Buying a franchise or an independent business: the differences that matterHow buying a franchise compares with buying an independent business in Australia, from what you gain and give up to ongoing costs, the Franchising Code and key checks.6 minute read
Valuing a business
How small businesses are priced and what moves the number.
- How small businesses are valued: profit, multiples and what buyers pay forThe main ways small businesses in Australia are priced, which profit figure to use, and the things that push a price up or down.4 minute read
- Add-backs and normalised profit: how sellers adjust the figures, and how buyers check themHow sellers adjust reported profit with add-backs and deductions to show what a business really earns, and how buyers test each adjustment before relying on it.6 minute read
- Stock at valuation: how stock is counted, valued and paid for when a business is soldHow stock is counted, valued and paid for when a business is sold, from the listing estimate to the settlement stocktake, and the terms to agree in the contract.6 minute read
- Asking price and sale price: why they differ, and how to read the gapWhy a business's asking price and final sale price can differ, how sellers set a price they can defend, and how buyers read and negotiate from it.6 minute read
Finance
Paying for a business: loans, vendor finance, earn-outs and deposits.
- How to finance a business purchase: loans, vendor finance and other optionsThe usual ways buyers in Australia pay for a business, what lenders look at, and the costs to budget for beyond the asking price.3 minute read
- Vendor finance: how it works when the seller lends part of the priceHow vendor finance works in an Australian business sale, the terms to put in writing, how the seller's security is protected, and the risks for buyers and sellers.6 minute read
- Earn-outs: when part of the price depends on how the business performsHow an earn-out works in an Australian business sale, how to set the measure, target and period, the protections both sides need, and what the ATO says about tax.6 minute read
- What lenders look for when you borrow to buy a businessHow lenders usually assess a loan to buy a small business, from whether the profit covers repayments to security and the lease, and what to prepare before you apply.6 minute read
Legal and tax
Contracts, leases, staff, GST and the paperwork that changes hands.
- The legal and tax steps in buying or selling a businessContracts, leases, staff, GST, duty, licences and the paperwork that changes hands when a small business is sold in Australia, with links to the official guidance.5 minute read
- Assigning a commercial lease when you buy or sell a businessHow lease assignment works when a business is sold in Australia, including landlord consent, state retail leases rules, the seller's ongoing liability, buyer checks, timing and costs.6 minute read
- Employees when a business is sold: transfer of business, entitlements and what to agreeHow the Fair Work transfer of business rules apply when a business with staff is sold, which entitlements carry over, and what buyers and sellers should agree.6 minute read
- GST and the sale of a going concern: when a business sale is GST-freeHow the GST-free going concern rules work when a business is sold, the conditions the ATO lists, common traps, and the GST steps for buyers and sellers.6 minute read
Industry guides
What to look for when buying a business in a particular industry.
- Buying a cafe: what to check before you make an offerThe checks that matter most when buying a cafe in Australia, from verifying takings and wage costs to the lease, the coffee supply agreement and council registration.4 minute read
- Buying a restaurant or takeaway: the checks that matterWhat to check when buying an independent restaurant or takeaway in Australia, from dine-in, takeaway and delivery sales to awards, the kitchen, food safety, liquor and the lease.6 minute read
- Buying an NDIS provider: registration, participants and the checks that matterWhat to check when buying a small NDIS provider in Australia, from registration and audits to participants, pricing, worker screening, staff and privacy in due diligence.6 minute read
- Buying a service station: fuel, the site and the checks that matterWhat to check when buying a service station business in Australia, from fuel volumes and shop sales to the supply agreement, underground tanks, licences, staff and the lease.6 minute read