In brief
Referral partners help clients most when the accountant is introduced early, the scope matches the transaction and professional responsibilities remain clear.
Why early involvement helps everyone
Business sale transactions often move quickly once a buyer becomes serious. The buyer wants confidence, the seller wants momentum, the broker wants a workable process and the lawyer needs financial questions identified early enough to address them in the transaction documents. An accountant can add the most value when involved before the buyer becomes unconditionally committed.
Early involvement does not mean turning every enquiry into a large investigation. It allows the accountant to understand the proposed transaction, available records, timetable and buyer concerns, then define a proportionate scope. It also gives the broker or lawyer a clear list of information needed rather than repeated requests arriving late in the process.
A clear division of professional roles
Financial and tax due diligence tests whether the commercial story is supported by the records. It may consider earnings quality, unusual adjustments, cash conversion, working capital, tax lodgements, liabilities, related-party activity and the assumptions used in the proposed price or funding model.
The accountant does not replace the business broker, lawyer, valuer, lender or industry specialist. Brokers manage the sale process and commercial communication. Lawyers advise on transaction documents, legal rights, warranties and conditions. Valuation and technical specialists address matters within their expertise. A useful due diligence process identifies where each question belongs and keeps those boundaries visible.
Information that supports an efficient review
The precise information request depends on the business and transaction. Common starting records include financial statements, tax returns, management accounts, BAS, payroll and superannuation records, bank or finance information, aged debtors and creditors, inventory records, customer and supplier information, asset schedules and explanations for owner adjustments.
Referral partners can help by encouraging a secure, organised information process and a nominated contact for questions. Records should be reconciled and accompanied by context. A data room full of unexplained files is not the same as reliable evidence. Where information is incomplete, the limitation should be recorded rather than quietly converted into an assumption.
What a decision-focused report should achieve
A good report does not simply repeat historical financial statements. It highlights material observations, explains adjustments and limitations, tests key assumptions and gives the buyer a clearer list of matters to consider before proceeding. Findings should distinguish verified information from management representations and matters that require legal or other specialist advice.
The purpose is not to guarantee future performance or tell the buyer whether to complete the transaction. It is to improve the quality of the decision. The buyer and advisers can then consider whether further information, a contractual protection, a price adjustment, a working-capital mechanism or another specialist review is appropriate.
A practical referral workflow
A referral can begin with a short introduction that identifies the buyer, the target business, transaction stage, expected timetable and any immediate concerns. Demeter then speaks with the prospective client, confirms independence and conflicts, determines whether the work is suitable and provides a written scope, information request, deliverable, limitations, timing and fee.
During the review, material questions can be channelled through the agreed contacts so the process remains controlled. Where an issue falls outside accounting or tax, it is referred back to the lawyer, broker or relevant specialist. The final discussion focuses on findings that matter to the decision rather than overwhelming the client with every minor accounting difference.
Virtual delivery across Australia
Due diligence does not depend on everyone being in the same city. Secure records, focused video meetings and clear communication allow the work to be delivered virtually across Australia. This is useful for regional transactions, interstate buyers and referral partners coordinating advisers in different locations.
Demeter Accounting & Advisory is based in Mundaring, Western Australia, and works virtually with buyers and referral partners Australia-wide. Amie Fisher brings 25 years of accounting experience and remains directly involved in defining the work and communicating the findings.
A useful introduction includes
The transaction essentials.
- Buyer and target business
- Current transaction stage
- Expected decision timetable
- Available financial information
- Known concerns or unusual adjustments
- Contact responsible for records and questions
Keep roles clear
Questions for the right adviser.
- Which findings require legal protections or drafting?
- Is a separate valuation or industry review required?
- Which assumptions remain unsupported?
- What must be resolved before commitment?
- How should material findings be communicated?