REIQ Best Practice Guidelines v03.23 - Flipbook - Page 69
THIS CHAPTER 6 APPLIES TO MEMBER BUSINESS BROKERS AND SHOULD
BE READ IN CONJUNCTION WITH CHAPTER 1 OF THESE GUIDELINES.
1. NEW APPOINTMENT
In conjunction with the PO Form 6 & Business
Brokers Schedule and Terms, Member Business
Brokers are encouraged to use the:
iv.
(a) Prospective Buyer Agreement;
(b) Business Information Statement;
(c) Request for an Appraisal of Selling Price of a
Business; and
(d) Marketing and Advertising Plan.
2. IDENTIFYING THE CLIENT
(a) Member Business Brokers must take
reasonable steps to verify the identity of the
owner of the business by conducting the
appropriate searches of the business name and
identifying the legal entity that owns the
business.
(b) If the business is owned by:
i.
ii.
iii.
a company: then Member Business
Brokers should conduct an ASIC
company search to confirm the
directors of the company;
a partnership: then Member Business
Brokers should identify the partners
individually by sighting copies of their
driver’s licence, passport or other
photo identification, confirmation of
their registered ABN and written
authority as to who the Member
Business Broker can take instructions
from and if decisions must be made
jointly or severally;
an individual sole trader: then Member
Business Brokers should identify the
person by sighting copies of their
driver’s licence, passport or other
photo identification, confirmation of
their registered ABN; and
REIQ BEST PRACTICE GUIDELINES
V08.23
a trust structure: then Member
Business Brokers should obtain a copy
of the Trust Deed, identify the trustee
and verify the identity and authority of
the trustee depending on whether it is
a company or individual as set out in
this guideline.
(c) If a Member Business Broker has any doubt
about the legal identity to be named in the PO
Form 6, then they should seek legal
advice to ensure the correct entity is
recorded in the PO Form 6 and contract of sale.
3. CLIENT TO OBTAIN NECESSARY
ADVICES
(a) Member Business Brokers should confirm if
their Client has obtained necessary advices
from an accountant and Legal Practitioner prior
to selling their business.
(b) If the Client has not obtained advice, Member
Business Brokers should refer the Client to an
accountant and Legal Practitioner to obtain
financial advice, tax advice and legal
advice prior to selling their business.
(c) In addition to guideline 5 of Chapter 1 of these
Guidelines, Member Business Brokers must
not:
i.
provide financial or tax advice to
Client’s with respect to their business;
ii.
prepare financial statements or
documents for the Client including
trading statements, balance sheets,
profit and loss statements, asset and
liabilities statements, forecasts, BAS
reports or tax returns;
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