Buying a business is exciting, and risky. Our due diligence service uncovers the full picture before you commit, so the price you negotiate reflects what you’re actually buying. Financial, tax, legal and operational review by qualified Australian accountants and lawyers. Reports from $3,500.
🛡 No obligation. We’ll get back within 1 business day.
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Due diligence is the pre-purchase investigation that verifies what the seller is telling you – financials, tax position, contracts, employment, IP, and operational risks. Most acquisitions over $200,000 should have at least basic due diligence; over $1M, it’s negligent not to.
We’ve run hundreds of due diligence engagements. The findings below are the ones that most often kill deals or trigger price renegotiation.
Buying a business without due diligence is like buying a property without an inspection. You
could inherit serious problems.
Discover debts, claims, and obligations that aren't visible on the balance sheet.
Make sure revenue and profit claims stack up and match the records.
Check for missing licences, problematic contracts, and employment issues.
Use our findings to negotiate a fairer price based on actual value and risk.
Verify revenue, expenses, assets, liabilities and cash flow to confirm the business's true financial position.
Check for outstanding ATO debts, lodgement compliance, and potential tax risks that could affect your ownership.
Examine contracts, intellectual property, licences, and employment obligations you'll inherit with the purchase.
Receive a clear summary of our findings, identified risks, and recommendations for moving forward.
If our due diligence report doesn't give you a materially clearer picture of the business, we'll refund the fee.
Three phases. Each gated by the seller’s response speed providing records — but we keep things moving.
Scope & Access
We define the scope of investigation based on transaction size, structure (asset vs share sale), and your specific concerns. We then issue an access request to the seller covering financials, contracts, ATO records, and operational documents. Typically 1 week from kick-off.
Deep Dive Review
Our accountants and lawyers review the records, follow up on questions, and verify against third-party sources where possible (ATO portal, public registers, customer/supplier confirmations). Most of the value is in the questions we ask the seller — answers tell us what they’re not saying.
Report & Recommendations
You receive a detailed report with risk ratings for each finding, indicative impact on price, and recommended negotiation positions. Followed by a debrief call to discuss implications and any open questions.
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It depends on the size of the business and the complexity of its financials, contracts, and operations. A straightforward small business review might take a few weeks, while larger or more complex deals can take longer. Straightforward small-business due diligence typically takes 2–4 weeks. Larger deals or complex multi-entity structures can run 6–12 weeks. The single biggest factor is the seller’s response speed in providing records — engaging a buyer’s accountant and lawyer early helps keep things moving. A Lawpath accountant can scope the process for you and keep things moving efficiently.
You’ll typically need access to financial statements, tax returns, BAS history, employee and contractor agreements, leases, supplier contracts, and any outstanding debts or legal matters. The more transparent the seller is, the smoother the process. A Lawpath accountant or lawyer can provide you with a checklist tailored to the deal.
Yes, and it often does. If the review uncovers issues like overstated revenue, undisclosed liabilities, or compliance gaps, you’re in a much stronger position to renegotiate the purchase price or deal terms. It’s one of the most valuable outcomes of a thorough review.
That’s exactly why you do it. If significant issues come up, you can renegotiate the terms, request the seller fix the problems before settlement, or walk away from the deal entirely. A Lawpath accountant or lawyer can help you assess the risk and decide the best course of action.
Not at all. Even small acquisitions can come with hidden debts, tax issues, or compliance gaps that cost you down the line. The size of the deal doesn’t change the importance of knowing what you’re buying. Lawpath can tailor the scope and cost of the review to match the size of the transaction.
Most pre-purchase due diligence engagements in Australia range from $3,000 to $15,000+ depending on the size and complexity of the target. Lawpath’s standard package is $3,500 (acquisitions under $1M); comprehensive engagements for $1M+ businesses are $7,500.
A business valuation tells you what a business is worth (typically used by sellers, partners or for tax purposes). Due diligence is a buyer-side investigation of risks before you commit — financials, tax, legal contracts, operational risks. Most acquisitions need both: the seller commissions a valuation, the buyer commissions due diligence.
You can run an informal review yourself, but for any acquisition over $200,000 you should have a qualified accountant verify the financials and tax position, and a lawyer review key contracts. The cost of due diligence is almost always less than the cost of buying a business with hidden problems.
No obligation. We’ll get back within 1 business day. Let us help you investigate before you invest.
By clicking on 'Submit an enquiry' you are agreeing to the Lawpath Terms & Conditions
