When a valuer, buyer, or advisor assesses your business, they need documentation to verify the numbers and evaluate risk. Missing or incomplete documents slow the process, reduce confidence, and ultimately lower the price.
This checklist covers everything you should have ready. You don’t need every document on day one, but you should be working towards a complete set well before going to market.
Financial Documents
These are the foundation of any valuation. Without clean, complete financials, no serious buyer or valuer can proceed.
Profit and Loss Statements (3 Years)
Why it matters: Three years of P&L data shows the earnings trend — whether the business is growing, stable, or declining. Valuers use this to calculate normalised earnings and assess future maintainable profit.
Provide management accounts (monthly or quarterly) in addition to annual statements. Monthly data shows seasonality and allows the valuer to identify anomalies.
Balance Sheets (3 Years)
Why it matters: Balance sheets show the asset base, liabilities, and net tangible asset position. They reveal working capital requirements, debt levels, and whether the business is over- or under-capitalised.
Ensure the balance sheet reconciles with the P&L. Unexplained discrepancies create doubt.
Tax Returns (3 Years)
Why it matters: Tax returns confirm that the figures in the financial statements have been lodged with the ATO. Discrepancies between management accounts and tax returns are a red flag.
Include both business tax returns and any related entity returns if the business operates through a trust or company structure.
BAS Statements (2 Years)
Why it matters: Business Activity Statements provide an independent verification of revenue through GST reporting. If BAS-reported revenue doesn’t match P&L revenue, there’s a problem to explain.
BAS statements also show payroll tax and PAYG withholding, which helps verify staff costs.
Bank Statements (12 Months)
Why it matters: Bank statements provide a cash-flow picture that financial statements don’t always capture. They show actual cash receipts, payment patterns, and any unexplained transactions.
Provide statements for all business accounts, including any accounts used for business purposes under personal names.
Aged Debtors and Creditors Reports
Why it matters: These show how quickly customers pay and how the business manages its payables. High aged debtors suggest collection issues or disputed invoices. High aged creditors can indicate cash flow pressure.
Forecast or Budget (Current Year + 1-2 Years)
Why it matters: Buyers are purchasing future earnings, not past earnings. A credible forecast supported by current pipeline, contracted revenue, and market trends helps justify your asking price.
An unsupported “hockey stick” projection does the opposite — it undermines credibility.
Legal Documents
Legal documents establish the rights, obligations, and risks associated with the business.
Customer Contracts
Why it matters: Contracts show revenue security and duration. Long-term contracts with renewal provisions are worth more than handshake agreements. The valuer will check for change-of-control clauses that could allow customers to terminate on sale.
Supplier Agreements
Why it matters: Key supplier terms affect margins and operational continuity. Exclusive arrangements, volume discounts, and long-term supply agreements add value. Dependencies on a single supplier with no contract create risk.
Lease Agreement
Why it matters: For location-dependent businesses, the lease is critical. A long-term lease at reasonable rent provides certainty. A short-term lease or one approaching market review creates uncertainty about whether the business can remain in its current location.
Include any correspondence with the landlord regarding renewal or assignment.
IP Registrations
Why it matters: Trademarks, patents, domain names, and design registrations protect competitive advantages. Unregistered IP may not be defensible. The valuer needs to confirm what IP exists and whether it’s properly owned by the business entity.
Licences and Permits
Why it matters: Many businesses require licences to operate — liquor licences, building licences, health permits, transport accreditations, financial services licences. The valuer needs to confirm these are current, transferable, and not at risk.
Non-transferable licences can be deal-breakers.
Franchise Agreement
Why it matters: If the business is a franchise, the franchise agreement governs almost everything — territory, fees, renewal rights, transfer provisions, and restrictions. Franchise transfer typically requires franchisor approval.
Operational Documents
These documents show how the business actually runs day to day.
Organisation Chart
Why it matters: Shows the management structure, reporting lines, and span of control. Reveals whether the business has a management team or is entirely owner-run. A clear org chart with defined roles signals a well-structured business.
Asset Register
Why it matters: Lists all tangible assets — plant, equipment, vehicles, fit-out, technology — with purchase dates, values, and condition. The valuer uses this to assess the net tangible asset base and identify any capex requirements.
Include details on leased or financed assets, as these may not transfer with the business.
Standard Operating Procedures (SOPs)
Why it matters: Documented processes demonstrate that the business can operate independently of the owner. They reduce transition risk and give the buyer confidence that quality and consistency will be maintained.
You don’t need a 200-page manual. Clear, practical SOPs for the 10-15 most critical processes are sufficient.
Customer List and Revenue by Customer
Why it matters: Shows customer concentration, relationship depth, and revenue distribution. The valuer will assess whether revenue is diversified or reliant on a small number of accounts.
De-identified data is acceptable during early stages; full details are shared during due diligence under NDA.
Technology and Software Summary
Why it matters: Lists all software, subscriptions, and technology platforms used in the business. Confirms licence ownership, transferability, and annual costs. Proprietary software or custom-built systems require specific valuation.
HR Documents
People are often the most valuable asset in a business. These documents assess the team and associated obligations.
Employment Contracts
Why it matters: Confirm terms of employment, notice periods, restraint clauses, and any special arrangements. The valuer and buyer need to understand the total employment cost and any risks around key people departing.
Include contractor agreements for any key contractors.
Leave Balances
Why it matters: Accrued annual leave, long service leave, and personal leave represent a financial liability that transfers with the business. Significant accrued leave balances reduce the net asset value and need to be factored into the price.
WorkCover/Workers Compensation History
Why it matters: Claims history affects insurance premiums and signals workplace safety culture. A history of frequent or severe claims creates risk for the buyer and may increase their operating costs.
Payroll Summary
Why it matters: Breakdown of wages, super, allowances, and on-costs by employee. Confirms the total employment cost and helps the valuer normalise for any over- or under-staffing.
Compliance Documents
These confirm the business operates within all regulatory requirements.
Industry Accreditations and Certifications
Why it matters: ISO certifications, industry body memberships, quality accreditations, and professional registrations demonstrate compliance and quality standards. Losing an accreditation post-sale would be costly or operationally damaging.
Insurance Policies
Why it matters: Confirms the business has adequate coverage — public liability, professional indemnity, product liability, business interruption, key person, and asset insurance. Gaps in coverage represent unprotected risk.
Provide a claims history for the past 3-5 years.
Environmental and WHS Compliance
Why it matters: Environmental obligations, waste management, hazardous materials handling, and work health and safety compliance are all potential liabilities. Non-compliance can result in fines, clean-up costs, or operational shutdowns.
For manufacturing, construction, or industrial businesses, an environmental assessment may be required.
Regulatory Correspondence
Why it matters: Any correspondence with regulators — the ATO, ASIC, state licensing bodies, environmental agencies — should be disclosed. Outstanding audits, investigations, or compliance notices are material information that will surface during due diligence.
Getting Your Documents Ready
The thought of assembling all these documents can be overwhelming. Here’s a practical approach:
- Start with financials. These are non-negotiable and take the longest to clean up.
- Work through legal next. Gather all contracts and check for change-of-control issues.
- Compile operational documents as you systemise the business.
- Engage your accountant and lawyer to review everything before you go to market.
Allow 3-6 months to assemble a complete document set. Businesses that enter the market with a well-organised data room sell faster and for higher prices than those that scramble to produce documents during due diligence.
Ready to understand what your business is worth? Use our free valuation calculator for an indicative range, or contact us to discuss a formal valuation.
Related reading:
- Due Diligence Checklist for Selling a Business — what buyers will examine in detail
- Preparing Your Business for Sale — the full 12-month preparation timeline