Business Due Diligence Checklist for NZ Buyers

Due diligence is how a buyer turns a promising story into a tested decision. It is not about finding a reason to reject every deal; it is about finding the facts that should change your price, terms or decision.

Financial checks

Review at least three years of accounts, GST and tax information, bank statements, debtor and creditor ageing, stock records, capital expenditure and add-backs. Reconcile revenue and investigate unusual margins or sudden growth.

Legal and property checks

Review the sale and purchase agreement, lease assignment and renewal rights, supplier and customer contracts, licences, intellectual property, insurance and any disputes. Confirm what is included in the sale.

Operational and people checks

Map how work is delivered, who owns key relationships, what systems are used and which tasks only the seller knows. Review employment agreements, leave obligations, health and safety responsibilities and key-person risk.

Market checks

Speak with customers where appropriate, test competitor pricing, understand concentration and look for structural changes. Then compare the evidence with your valuation range. A professional adviser should guide the final decision.