SME M&A Due Diligence Checklist: Financial, Legal, GST and Operational Red Flags

A buyer-focused checklist for SME acquisitions covering financial quality, GST exposure, legal risks, customer concentration and operational diligence.

Why SME due diligence must go beyond headline profit

SME transactions can carry hidden risk in tax positions, undocumented liabilities, customer dependency, informal processes and owner-driven revenue. Diligence helps buyers understand what they are really acquiring.

What buyers should review

Review revenue quality, receivables, debt, GST and tax compliance, litigation, vendor contracts, employee obligations, customer concentration, licences, systems, asset ownership and working capital needs. Each item can affect valuation or deal structure.

How Aeirth thinks about it

Aeirth approaches diligence as a decision tool. The aim is not only to find problems, but to understand whether the deal can be priced, structured and integrated sensibly.