Updated 28 October 2026
Once you've accepted an offer, the buyer gets a few weeks to check that the business is what you said it is. Advisors call this due diligence. It sounds intimidating, but it boils down to six questions — and you can answer most of them before a buyer ever asks.
1. Are the numbers real?
Expect requests for three years of financial statements, monthly management accounts for the current year, bank statements and a breakdown of sales by customer. The buyer is checking that profit turns into cash and that nothing unusual is hiding in the figures.
2. Is the tax in order?
Buyers look at income tax, VAT, PAYE and other payroll filings. Outstanding returns or open queries with SARS are worth fixing now — they are among the most common reasons a buyer holds back part of the price.
3. Will the customers stay?
The buyer will want to see customer contracts, how long customers stay and how concentrated sales are. Before the deal is final, they may ask to speak to a few key customers — always with your agreement and at a time you choose.
4. What about the staff?
Employment contracts, salaries, leave owed and any labour disputes. When a business is sold as a going concern in South Africa, employees generally transfer to the new owner automatically, so the buyer takes on those obligations and will check them carefully.
5. Does the business own what it uses?
- Leases for premises and equipment — and whether they can be transferred.
- Licences, permits and registrations — and whose name they're in.
- Your brand, website, software and other intellectual property.
- Supplier agreements, especially with any supplier you can't easily replace.
6. Is anything about to go wrong?
Legal claims, warranty problems, environmental or safety issues, and B-BBEE status where it matters to customers. Being upfront about known issues is always cheaper than having a buyer find them.
How we help
Preparing your documents and running the buyer's checks with you is part of the work covered by our R45,000 starting fee. You answer questions; we keep the process moving and make sure nothing is handed over before it should be.
