Financial and operating records
Request income, expense, bank and sales records covering a representative period. Check seasonality, cash transactions and one-off items. Resolve differences between listing descriptions, verbal claims and documents before relying on them.
Lease and premises
Read the full lease and verify its term, rent reviews, deposits, permitted use, repairs and transfer arrangements. Confirm necessary consent with the landlord and appropriate advisers. Buying a business does not by itself guarantee assignment of its lease.
Licences, contracts and liabilities
Check licence type, holder, address, permitted activities and current validity. Food business licence or permit transfers have a specific FEHD application process. For other sectors, check with the relevant authority. A licence mentioned in a listing is not a guarantee of transferability.
Clarify whether the transaction transfers assets or company shares and how debts, prepayments, unfinished customer services and supplier contracts are treated. Have the contractual allocation of obligations reviewed by suitable legal and accounting professionals.
People and handover
Review employment contracts, service history, leave, remuneration and relevant records. Verify retention and handover arrangements. Employment obligations depend on the actual transaction and employment circumstances, not just verbal agreements between buyer and seller.
Asset checks and completion
Before handover, jointly check equipment, stock, keys, accounts and operating documents. Record condition, training, supplier introductions and completion conditions. Verify the purpose, notices and appropriate handling arrangements before transferring customer or employee personal data.
Sources
This is general preparation guidance, not legal, tax or valuation advice for an individual transaction.