The Fair Price Evaluator · Checklist
Documents to request from the seller
Ask for everything on this list before you take any figure seriously. A seller with nothing to hide will produce most of it within a week. Reluctance on the financial records section is itself a finding.
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Financial records
- Annual financial statements for the last three years, signed
- Management accounts for the current year to date
- The last four VAT201 returns and the SARS statement of account
- Business bank statements for the last twelve months
- Debtors age analysis and creditors age analysis, current
- Payroll summary: every employee, role, salary, and start date
Assets and stock
- Fixed asset register with purchase dates and condition
- Stock list at cost, with anything older than six months marked
- Details of any assets on lease or instalment sale, with settlement figures
Contracts and legal
- The premises lease: remaining term, escalation, and assignment conditions
- Customer contracts, and confirmation of whether they survive a change of ownership
- Supplier agreements and any exclusivity or minimum purchase terms
- Employment contracts and any restraints of trade
- Franchise agreement and Franchise Disclosure Document, if applicable
- All loan agreements: balances, rates, security given, and covenants
- Any pending or threatened legal disputes, in writing
Compliance
- CIPC registration documents and the latest annual return
- Business licences, health certificates, and liquor licence where applicable
- Confirmation of VAT, PAYE, UIF and SDL registrations, all up to date
- Proof of workmen’s compensation (COIDA) registration and good standing
Once the documents arrive, run the numbers through The Fair Price Evaluator to get a fair value range and the questions the figures raise.
General information only. Not legal, tax, or financial advice.