Buying a business safely

Check who you're dealing with

Ask for the business's ABN and look it up for free on ABN Lookup (abr.business.gov.au). Check that the name, location and type of business match the ad, and that the ABN is active.

If a broker is selling it, ask for their licence or registration details where your state requires one, and check them with the state's licensing body.

Get the numbers from the source

Figures in an ad come from the seller. Ask for at least two or three years of profit and loss statements, tax returns and business activity statements, ideally sent to your accountant by the seller's accountant.

Be careful with figures that are hard to check, such as cash takings that don't appear in the bank statements. If it's not on paper, don't pay for it.

Never pay before the paperwork

A genuine seller won't ask for money before you've seen the business and signed a proper contract. Deposits normally go into a solicitor's or agent's trust account, not to a person's own bank account.

Be wary of anyone who asks you to pay by gift card, cryptocurrency or an overseas transfer, or who says another buyer will take the business unless you pay today.

Visit, and look for yourself

Visit the business, more than once if you can and at different times of day. Check that the premises, equipment and stock match the ad and the list of what's included.

Use a solicitor and an accountant

An accountant can check the figures and the price. A solicitor can check the sale contract and the lease, and make sure the business is free of debts and charges before it becomes yours. You can search the Personal Property Securities Register (ppsr.gov.au) for anything owed against equipment or vehicles.

If something feels wrong

Stop and get advice before you go any further. If you think an ad on NextOwners is a scam, use the Report this ad button on the listing and we'll look at it. You can also report scams to Scamwatch (scamwatch.gov.au).