Buying a Business in Queensland? Protect Yourself with These Due Diligence Steps
Purchasing a business can be a profitable investment—but without proper due diligence, you may inherit hidden debts, operational issues, or legal risks. If you’re looking to buy a business in Queensland, conducting a thorough investigation is essential. Our expert commercial lawyers at Bennett Carroll Solicitors can help safeguard your investment by ensuring you identify and address all potential risks. We have offices in Brisbane North, Brisbane South, Brisbane Central, Ipswich, the Sunshine Coast, and the Gold Coast, and we can assist you electronically—so you don’t need to visit us in person.
What is Due Diligence in a Business Purchase?
Due diligence is the process of thoroughly reviewing a business’s financial, legal, and operational aspects before completing a purchase. It helps buyers understand what they are acquiring and avoid unexpected liabilities.
Key Due Diligence Areas to Cover
- Financial Review
- Examine financial statements, tax returns, and profit/loss reports.
- Assess outstanding debts, liabilities, and cash flow trends.
- Legal Compliance & Business Structure
- Check business registration, licensing, and compliance with industry regulations.
- Verify if there are ongoing legal disputes or regulatory issues.
- Contracts & Agreements
- Review supplier, customer, and employment contracts.
- Ensure existing agreements can be transferred or renegotiated.
- Intellectual Property & Assets
- Confirm trademarks, patents, and copyrights are correctly owned and included in the sale.
- Evaluate physical assets such as equipment and stock.
- Lease & Premises Review
- Assess lease terms, rental obligations, and any necessary approvals for transfer.
- Check for any restrictions affecting business operations.
- Employee and Staffing Issues
- Review employee entitlements, wages, contracts, and redundancy obligations.
- Consider the impact of transferring or terminating staff.
- Market & Competition Analysis
- Evaluate the business’s position in the market, including customer retention and industry trends.
- Identify potential competitors and risks to future profitability.
Why Legal Due Diligence Matters
Skipping due diligence can result in costly surprises, such as undisclosed debts, lease restrictions, or legal liabilities. Having an experienced commercial lawyer ensures you understand the risks and negotiate protections in your contract before finalising the deal.
Need Help with Buying a Business? Speak to Our Expert Commercial Lawyers
At Bennett Carroll Solicitors, we are experts in business purchases, contract reviews, and legal due diligence. Our commercial lawyers serve clients across Brisbane, Ipswich, the Sunshine Coast, and the Gold Coast. Let us help you make an informed decision and protect your investment.
For tailored legal advice, contact us today to schedule a consultation.
Here are some relevant articles from Bennett Carroll Solicitors:
- Is Your Current Lawyer Truly Supporting Your Business Goals?
Why having the right legal support matters when buying a business. - Navigating Business Structures: A Guide to Setting Up Your Business
Understanding the best business structure when purchasing a business. - Demystifying Business Contracts: Essential Dos and Don’ts for Queensland Entrepreneurs
Avoid common pitfalls when reviewing business contracts during due diligence. - Contract Negotiation – Tactics & Strategy – Legal Advice Article
Key negotiation strategies for securing the best deal when buying a business. - Navigating Business Contracts: How a Contract Lawyer Can Safeguard Your Interests
Why having a lawyer review contracts is crucial before purchasing a business. - Business Owner’s Essential Legal Check: Comprehensive Checklist
A checklist to ensure your legal due diligence is thorough when buying a business.
