Business figures become useful only when you know what they measure, where they come from and which costs or risks they omit. Sound decisions connect reported earnings with cash flow, investment needs and the purchase price.
Practical example
Even if a transfer costs €80,000, the buyer may need additional funds for deposits, renovations, wages, suppliers and the first months of trading.
What to check before moving forward
What the asking price includes
Check what the asking price covers: equipment, stock, property, deposits, cash and any debt adjustments. A headline figure without a breakdown cannot reliably be compared with other deals.
Budget beyond the purchase price
Calculate not only the purchase price but also the cash needed to operate after completion. Allow a buffer for advisers, repairs, applicable taxes and working capital.
Working capital
Working-capital needs can change month to month. Review receivables, payables, inventory and balances, and agree how working capital will be adjusted at closing.
Additional transaction costs
Include adviser fees, registration costs, any broker fees, repairs, permits and financing charges. The listed purchase price is only part of the initial outlay.
Preparing for completion
Plan completion around outstanding conditions, deliverables, payments and post-closing responsibilities. An agreement in principle is not the same as a properly completed acquisition.
How to use this guide
Start by requesting sources for each important claim and noting what remains unverified. Cross-check answers against records, visit the operation where appropriate and bring material risks to an adviser before committing. Never fill missing financial figures with your own assumptions.
Evidence worth requesting before you proceed
A sales description is a starting point, not proof. These documents help distinguish verifiable facts from expectations:
- Outstanding debt and repayment schedule
- Working-capital and inventory trends
- Maintenance history and deferred investment
Request information appropriate to the negotiation stage and respect confidentiality arrangements. Sensitive documents may be shared only after a buyer is identified.
Final takeaway
A sound transaction starts by defining what changes hands, checking the facts and documenting the agreement. Use this guide as a map of questions, not a replacement for a review tailored to the actual business.
General information only; not personalised legal, tax or financial advice. Rules depend on the transaction and may change.