Chinese restaurant for sale in Ipswich, Other areas

Questions to ask

Questions worth asking before an inspection, based on the seller's figures. It does not judge the business and is not a valuation or advice — rely on the actual records.

• No net profit given, so the price-to-profit ratio cannot be worked out.
• On the seller's figures rent is about 8% of revenue. Check whether rent includes GST and outgoings, and compare with the revenue in the books.
• Only 1 years left on the lease — confirm the landlord will renew and at what rent.

Questions to ask the seller before you inspect

1. Can you provide the last 12 months of BAS, POS reports and bank statements?
2. The lease itself: term left, options, annual increases and who pays outgoings?
3. Will the landlord consent to the assignment? Is there a bond or bank guarantee to transfer?
4. How are staff wages, contracts and accrued annual leave handled?
5. Is there an equipment list, and is anything leased or under hire purchase?
6. Any unpaid bills, fines, complaints or health-inspection issues?
7. Are food safety certificates and council registration in order and transferable? Do the delivery-app accounts come with the sale?

Full due-diligence checklist: Small business handbook (Chinese). Guide price range: Valuation.