Practical worksheet

Business purchase due diligence checklist

Organise the questions and records to examine before buying an existing business.

Last reviewed 2 October 2026

Before you start

Treat seller claims as information to verify. Ask an accountant and lawyer to review material findings before signing.

The advertised profit may not tell you about lease terms, customer reliance, staff costs or liabilities.

Use before making a binding commitment and update as documents arrive.

Unverified claims and obligations become negotiation points or reasons to pause.

Each prompt explains what to enter. The example is a guide, not a target for your business.

01. What is included

List assets, stock, intellectual property, contracts, business name and anything excluded.

Check whether the booking system, domain and vehicle are part of the price.

02. Financial evidence

Request accounts, tax records, bank statements, debtors, creditors and cash-flow records; reconcile differences.

Sales in accounts differ from bank deposits; accountant to investigate.

03. Customers and operations

Check customer concentration, recurring work, supplier dependence and owner tasks.

One customer provides 45% of sales and can cancel on 30 days notice.

04. Legal and people

Have a lawyer review leases, licences, employment, disputes, security interests and transfer conditions.

Landlord consent required before lease transfer.

05. Price and handover

Record valuation assumptions, working capital included, handover support and unresolved conditions.

Price assumes stock at cost; count and value stock at settlement.

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This worksheet is general planning information. Ask a qualified accountant, tax agent or lawyer where your decision needs specialist advice.