Checklist of Information required for considering the 4 options

This list is not intended to be exhaustive but it is still of necessity fairly detailed.

  • Search the Register of the Australian Security and Investments Commission (ASIC)
  • This search will tell you who ASIC has listed as being registered directors and shareholders as well as the address details for the company and its officers.
  • Searches the Personal Property Security Register (PPSR)
  • This search will tell you who has registered a security interest over the assets of the company. (However, it will not tell you whether the security interest is valid nor whether it is enforceable. This will only be likely to be known once all security documentation has been reviewed including the documentation involving the registration and the documentation involving the commercial arrangements between the parties).
  • Financial statements – historical
  • Financial statements include profit and loss statements and balance sheets (statements of financial position), if accurately prepared, will provide an insight into whether a company is likely to be solvent or insolvent. Historical statements will not, however, provide more than an indicia as to whether future performance is likely to result in a net improvement in the financial position of the company. It is also important to note that the absence of financial statements may be an indicia of insolvency.
  • Supporting financial records
  • Typically, this would include aged listings of debtors (receivables) and creditors (payables) as well as any other balance sheet account (eg Prepayments, Accruals and Employee liabilities) together with details of company’s TFN, the Integrated Client Account portal and bank statements.
  • Financial forecasts
  • Forecasts may include profit and loss projections, cash flow projections and projected balance sheets based upon the profit and loss and cash flow projections.
  • Listing of assets
  • All physical assets on the company’s premises including all assets which might be owned by third parties including financiers. It is also useful to have a listing of all potential intellectual property assets including all contact and communication details (including domain names), software including user names and passwords.
  • Details of contracts
  • All contracts with third parties including customers, suppliers, employees, landlords and financiers. All contracts involving the purchase of material assets including the business.
  • Personal guarantees
  • Details of all personal guarantees provided by the directors and/or shareholders and related parties (current and former).
  • Shareholder and trust records
  • Any shareholder agreements and/or trust deeds.
  • Valuation from your accountant or financial advisor (if business and/or assets have been sold)
  • Valuation from an asset valuer (if you have a valuation from your accountant or financial advisor)

If you would like to find out more about how we help business owners, give us a call for a confidential, no obligations free chat on 1300 783 309 or contact us.

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