A business listing starts a conversation. Due diligence helps you decide whether the business behind that listing fits your plans. For a buyer in Vancouver or elsewhere in BC, a useful starting point is a written request list with a named adviser responsible for each area of review.
Start with the questions you need answered
BusinessesForSale.com describes due diligence across the commercial, financial and legal aspects of a purchase. Use those areas to organise your questions. What generates sales? What costs will continue under your ownership? Which agreements will you need to operate? A folder of documents is useful only if someone reviews what the records mean.
Ask your accountant to define the financial request
BDC’s due-diligence guide recommends reviewing historical and current financial information with your accountant. Relevant records may include financial statements, tax returns, bank statements and accounts receivable or payable reports. Your adviser can determine which periods and supporting records are appropriate for this business. Ask for an explanation when figures differ between documents.
Make the request list easy to follow
Give each request a reference number. Record the document requested, the period it covers, the person providing it and the date received. Keep a separate column for follow-up questions. If a document is unavailable, record that explicitly rather than marking the request complete. This makes it easier to see what remains unresolved before a deadline.
For example, a buyer reviewing a small service business could label the first request “F01 — year-end financial statements” and a follow-up “F01a — explanation of the expense increase.” This is an illustrative filing method, not a requirement. Use whichever format your advisers can review reliably.
Review the operating arrangements
Ask how work reaches the business and how it is delivered. Discuss the owner’s involvement and the responsibilities a new operator would take on. For each important relationship, write down the question that needs answering: does the agreement continue after a sale, does another party need to consent, and who will confirm that? Your lawyer should assess the actual contract.
Give premises and permissions their own review
BDC includes leases, licences, permits and assignability of key contracts in legal due diligence. Where a BC transaction includes real estate or a lease, BCFSA’s consumer guide explains the real estate component. Have your advisers identify the approvals and documents relevant to the proposed transaction. Avoid assuming that an existing operation proves your proposed use is approved.
Turn findings into a decision
Create a short issues list for your next adviser meeting. Distinguish a missing document from a discrepancy that needs investigation. Ask which unresolved matters affect your budget, proposed terms or ability to operate. Keep the decision tied to evidence rather than the amount of time you have already spent on the purchase.
Prepare your first enquiry
For the earlier stages of your search, read the Vancouver buyer’s checklist and browse current business and property listings. Contact Thomas Lau with your preferred industry, general location and acquisition budget. Keep confidential financial documents out of an initial public enquiry.
Sources and further reading: BusinessesForSale.com’s buying guide, BDC’s due-diligence guide and BCFSA’s consumer guide. General information only; obtain advice for your transaction.