REIQ Best Practice Guidelines v03.23 - Flipbook - Page 70
iii.
iv.
provide financial statements or
documents to a prospective buyer
which have not been prepared by an
accountant unless a written statement
is given to the prospective buyer
notifying them that the information
provided has not been prepared by an
accountant; or
give an assessment of the truth or
accuracy of any disclosure or financial
information
provided
by
an
accountant or other qualified advisor
appointed by the Client.
4. BUSINESS INFORMATION
(a) Member Business Brokers should obtain a
completed and signed Business Information
Statement from the Client to identify important
information about the business they are
appointed to sell.
(b) The Business Information Statement should be
substantially completed, accurate and include:
i.
ii.
iii.
substantial
business;
information
about
details of the existing lease including
term, rent, options, rent reviews,
outgoings,
lessor/agent
contact
details;
iv.
trading hours;
v.
list of plant equipment, fixtures and
fittings, their market value and what
items are owned by the business or
leased;
vi.
if there will be a buyer trial period;
vii.
copies of any lease documents;
V08.23
breakdown of the price including work
in progress and stock;
ix.
financial information about sales
income, expenses, net profit/loss; and
x.
annexure of financial documents
prepared by an accountant (minimum
of 3 years if applicable).
(c) The Business Information Statement should
include a warranty given by the Client that the
statement is true and correct, and that the
Client has made full and comprehensive
disclosure to the Member Business Broker of all
relevant facts, information and documentation
that the Member Business Broker may rely on
and provide to third parties including
prospective buyers.
(d) If a Member Business Broker reasonably
believes they have not received sufficient
disclosure from the Client to:
i.
complete
business;
ii.
market the business for sale; or
iii.
meet
the
Client’s
disclosure
obligations under the contract of sale;
the
details of the employees including the
number
of
employees,
names,
position, wages, leave entitlements
accrued, years’ employed;
REIQ BEST PRACTICE GUIDELINES
viii.
their
appraisal
of
the
then the Member Business Broker should
request the information it considers necessary
to complete the disclosure and advise
the Client to seek legal advice about
what disclosure is required.
Business Information Statement
Available in Realworks
Read about how sellers can
get business sale-ready
70
