If You’re Considering Buying a Business in Australia, Read On…  

What You Need to Know Before You Sign on the Dotted Line    

If you are thinking about buying business in the Outback, the first thing you will want to do is a search engine scan for Australian business brokers, where you will find top listings, including franchise and non-franchise opportunities, all of which you can search quickly and effortlessly by industry type, allowing you to really focus on areas that most interest you, saving you time and frustration.    

Working with a Broker

The next step is to contact the broker and find you more about the potential business. Of course, if you found a handful of businesses that piqued your interest, let the broker know. Working with him or her, you can narrow your list of possibilities because your broker will know enough about each business to help you determine if you want to keep it on your list or cross it off for good.    


Financing

Once you and your broker find a business opportunity that feels just right to you, the next thing you will want to concentrate on is the financing. Your broker will need to know specifics about how you plan to finance your Australian business, such as:  

• Do you have the financial means to purchase the business
• Do you need financing?
• Are you on a redundancy package?  

Your broker will require you to fill out an application if you need financing and will be available to assist you through this process. Of course, it may help you to find a broker that is also a financier, especially if you know you will need extensive financial services.  

A finance broker will charge a fee, which you will want to know upfront as you determine whether or not this type of broker is for you. Other brokers may work just as well simply because they are paid to get the business sold and are well-versed in this arena and want to work with you and make sure you get your needed financing so their deal goes through.  

Regardless of which you choose, your broker will need the following information from you:  

• Bank statements for your personal accounts
• Pay verification
• Mortgage documents for your home or other businesses
• Passport
• Credit Check
• Rates notices of homes already in your name
• Liability and asset declaration
• Details on the amount of money you need to finance buying the new business  

Your broker will provide your accountant (assuming you have one and if you don’t, you will need to work to find one that you can trust) with a detailed profile on the business you want to buy, which provides all the information needed for you and your accountant to make an informed decision.  

Note: You may be asked to sign a confidentiality agreement before receiving this highly confidential information. Signing this agreement does NOT commit you to buying the business, but it is necessary for you to sign the agreement before you can review the business information you and your accountant need. This simply protects the vendor (or business owner).    

So, You Want to Move Ahead

Once you and your accountant determine that purchasing the business is in your best interest and you are ready to move ahead, put in a competitive offer soon. But, before you do, ask yourself one final answer: “Is this a business you think you can sale in four or five years if you decide it is not for you?”  

This single question can save you immeasurable amounts of time, money and frustration down the road. Aside from that, you are not doing anyone any favors by not expressing concerns you may have.  

Remember, the broker’s goal is to help you find a business that is suited to your unique needs and wants you to be happy and profitable. If you doubt this can be the case, or you simply get a case of cold feet, talk to your broker. You may want to look at other opportunities together or you may determine that this is the one for you.    

Putting in an Offer – The Contract Phase

If you and your broker decide to move ahead and put in a firm offer, you broker will draw this up for you (which is called a standard form of purchase). Your broker will then review this carefully for you, adding in your specific information as it applies.  

You and your accountant should also review this carefully before you sign it, making sure the financials are exactly right.  

Once you sign the agreement, your broker will issue sales advice to the vendor’s solicitor, including information all conditions that you request such as closing date, lease terms, etc.  

The vendor and the vendor’s solicitor will review this and when they sign it, you will want to take the document to your solicitor. If you do not have a solicitor, your broker may be able to help you locate one.  

Once everything is agreed on, you will need to pay 10% of the purchase price (in the form of a deposit bond or check).  

You can expect this contract phase and the subsequent settlement that follows to take less than four weeks.  

Of course, if you have any questions as you go, and throughout any stage of the process, you will want to talk to your broker. He or she will be able to best guide you through from beginning to end.