Due Diligence Checklist for Business Buyers in 2026
Due diligence is where successful acquisitions are made. It is the process of thoroughly investigating a business before committing to purchase.
Financial Due Diligence
Request:
- Three years of financial statements
- BAS returns
- Tax Returns
- Cash flow reports
- Debtor and creditor ledgers
Review gross profit margins and compare them with industry benchmarks.
Assets and Equipment
Confirm:
- Ownership of all assets
- Asset condition
- Service history
- Existing finance agreements
Ensure assets will be transferred free from encumbrances.
Lease Review
Obtain a copy of the lease and review:
- Remaining term
- Rent reviews
- Demolition clauses
- Market review clauses
- Option periods
Seek legal advice before proceeding.
Intellectual Property
Verify ownership of:
- Business names
- Trademarks
- Domains
- Proprietary systems
Employees
Understand:
- Key personnel
- Employment contracts
- Entitlements
- Retention risks
Legal and Compliance
Investigate:
- Litigation history
- Pending legal actions
- Regulatory compliance
- Industry licences
Why Due Diligence Matters
Proper due diligence protects buyers from unexpected risks and ensures informed decision-making.
Q1 Brokers works alongside buyers to ensure nothing is overlooked during the acquisition process.