A Guide For Buyers
Acquiring a Business in Queensland
Buying a Business in Queensland
A Practical Guide for Business Buyers
Buying a business can be a faster and more secure pathway into ownership than starting from scratch. With an established customer base, existing systems, and immediate cash flow, the right business can provide both income and long-term value.
However, knowing what to look for — and what to question — is critical.
At Taylor Business Brokers, we work with buyers across Queensland to identify suitable opportunities and guide them through the process from initial enquiry through to settlement. Whether you are considering a service station, café, manufacturing business, or commercial property, understanding how to assess a business properly will help you make a confident and informed decision.
Buying a business is not just about finding an opportunity — it’s about understanding whether it is the right fit for your financial position, skills, and long-term goals.
The process typically begins with reviewing available businesses and narrowing down opportunities that align with your criteria. From there, gaining access to detailed information allows you to assess performance, risk, and potential. Every business is different. The structure, lease terms, financial reporting, and operational requirements all play a role in determining whether a business represents a sound investment.
The Business Buying Processs
Most business purchases follow a structured process:
- Identify and review suitable businesses for sale
- Sign a Confidentiality Agreement to access further information
- Review the Information Memorandum and financial performance
- Conduct due diligence with your accountant and solicitor
- Secure finance (if required)
- Negotiate terms and agree on a deal structure
- Sign contracts and proceed to settlement
- Complete handover and transition into ownership
Each stage is important. Taking the time to properly assess a business can significantly reduce risk and improve the outcome of your purchase.
What to Look for When Buying a Business
Experienced buyers look beyond revenue. A well-presented business may not always reflect its true performance.
Key areas to assess include:
- Financial performance – consistency of income and profitability
- Adjusted profit – understanding addbacks and true working owner earnings
- Lease terms – remaining tenure, options, and rent structure
- Industry position – demand, competition, and local demographics
- Operations – staffing, systems, and reliance on the owner
- Plant and equipment – condition, age, and replacement requirements
- Growth opportunities – areas where the business can be expanded
- Risks – regulatory, environmental, or operational factors
For example, in service stations, this may include fuel volumes, margins, tank infrastructure and environmental compliance. In hospitality, it may be lease terms, staffing structure and consistency of trade.
Understanding the Financials
One of the most common mistakes buyers make is relying solely on reported net profit. Business financials are often prepared for taxation purposes, not to reflect the true earnings available to a working owner.
This is why reviewing adjusted profit and loss statements is critical. These may include addbacks such as:
- Owner wages or discretionary expenses
- Interest and depreciation
- One-off or non-recurring costs
Understanding these adjustments allows buyers to assess the real earning capacity of the business and compare opportunities more accurately.
Due Diligence – Protecting Your Investment
Due diligence is where a buyer verifies that the business performs as represented.
This process typically involves:
- Financial verification with your accountant
- Lease review with your solicitor
- Equipment and asset inspections
- Review of contracts, licences, and compliance requirements
- Understanding supplier agreements and customer relationships
In more specialised industries, such as service stations, this may also include environmental reports, tank and line testing, and groundwater assessments.
A thorough due diligence process provides clarity and reduces the risk of unexpected issues after settlement.
Making an Offer on a Business
Once you have reviewed the Information Memorandum and are comfortable with the opportunity, the next step is to submit an offer using a contract, typically based on the Real Estate Institute of Queensland standard business contract.
Before signing, it is important to understand both the standard conditions and any special conditions required to protect your position.
Buyers should speak with their solicitor before making an offer to ensure appropriate special conditions are included.
Special conditions may cover:
- Verification of financial figures and trading performance
- Transfer or assignment of supplier agreements
- Franchise or branding approvals
- Stocktake process and stock valuation at settlement
- Training and handover period from the seller
- Employee entitlements and transition arrangements
- Plant and equipment to be in working order at settlement
- Industry-specific requirements (e.g. environmental reports for service stations)
Before You Submit an Offer
- Review all available business information
- Speak with your accountant regarding financial performance
- Engage a solicitor to draft or review special conditions
- Confirm your funding position (if applicable)
Disclaimer: This guide is provided for general informational purposes only and does not constitute financial, legal, or taxation advice.