KCF Advisory

29/07/2026

How much deposit do I need to buy a business?

It's probably the first question we hear from prospective buyers, and the honest answer is...it depends!

There isn't a universal rule that says every business purchase requires a 50% deposit, however it is a safe starting point!
The amount you may need to contribute is influenced by a range of factors.

Is the business independent or Franchised?
Is it a going concern with or without a freehold?
What is the profile of the prospective buyer?
What is the performance of the business?

As a general guide, many acquisitions are structured with around 50% equity plus acquisition costs, however a deeper understanding of the transaction potentially can uncover options.

We've supported buyers through acquisitions that have ultimately secured funding with more than 80% gearing, because the business demonstrated strong financial performance and the overall transaction presented a compelling lending proposition.

The important point is this: don't rule yourself out before understanding what's actually possible.

Every acquisition should be assessed on its own merits. The right advice before making an offer can significantly influence not only whether a transaction is financeable, but also how it should be structured from the outset.

If you're considering buying a business and wondering how much deposit you'll need, we'd be happy to have that conversation before you commit.

KCF Advisory
Clarity before commitment

📱 0428 827 174
✉️ [email protected]

27/07/2026

Reported profit is not always maintainable earnings

The profit shown in a business’s financial statements may not represent the earnings a buyer can reasonably expect after settlement.

A proper assessment should consider:

👤 The commercial cost of replacing the owner’s role
➕ Whether proposed add-backs are genuine and supportable
💼 Expenses likely to continue under new ownership
📈 Unusual or non-recurring income
🔧 Future staffing, maintenance and capital requirements

These adjustments can materially change the earnings available to support the purchase price, finance commitments and ongoing operations.

Understanding maintainable earnings provides a clearer view of the business beyond the headline profit figure.

Clarity before commitment.

📞 0428 827 174
✉️ [email protected]

23/07/2026

20/07/2026

The purchase price is only part of the investment

Buying a business requires more capital than the amount paid to the vendor.

After settlement, the business may still require funding for:

📦 Stock and supplier payments
👥 Wages and superannuation
🏢 Rent, bonds and operating expenses
⏳ The timing gap between expenses and customer receipts

A business may appear affordable based on its purchase price but become financially strained if insufficient working capital remains after settlement.

Before committing to an acquisition, understand both the cost of buying the business and the capital required to operate it safely from day one.

Clarity before commitment.

📞 0428 827 174
✉️ [email protected]

14/07/2026

What is goodwill and why are you paying for it?

Most first-time buyers understand they're buying equipment and stock.

What many don't realise is that a significant portion of the purchase price is often goodwill.

Goodwill can include:
• An established customer base
• Reputation and brand recognition
• Existing systems and processes
• Supplier relationships
• Experienced staff
• The ability of the business to generate future profits

The important question isn't "How much goodwill am I paying for?"

"Is that goodwill supported by the business's financial performance?"

A business should be valued on its ability to generate sustainable profits not simply because the owner believes it's worth that amount.

Before signing a contract, make sure you understand exactly what you're paying for.

Clarity before commitment.

📞 0428 827 174
📧 [email protected]

12/07/2026

The most expensive decisions are often made with incomplete information.

A business may appear attractive based on:
• revenue
• profit
• equipment
• asking price

But every acquisition is like a puzzle.
Looking at a handful of pieces doesn't reveal the complete picture.

The value lies in understanding how everything fits together.
performance.
.
.
.
.
capital.
opportunities.

Successful acquisitions aren't built on assumptions.
They're built on understanding the complete picture before making a commitment.

If you are struggling to understand the full puzzle, please make contact so we can assist you through this process.

📞 0428 827 174
📧 [email protected]

09/07/2026

What you can't see matters most.

When buying a business, it's easy to focus on the obvious.

Revenue.
Profit.
Plant and equipment.
The asking price.

The greatest risks, however, often sit beneath the surface.

Consider:
• customer concentration
• key staff dependency
• supplier reliance
• lease obligations
• deferred capital expenditure
• working capital requirements

These factors may not be immediately visible, yet they can have a significant impact on the future performance and value of the business.

Due diligence isn't about finding reasons not to proceed.

It's about understanding exactly what you're buying before you commit.

If you're considering purchasing a business and would like an independent commercial assessment before committing, we would be happy to have a confidential conversation.

📞 0428 827 174
📧 [email protected]

05/07/2026

A business purchase isn't an investment in yesterday.

It's an investment in tomorrow.

Historical financial statements tell an important story, but they only explain where the business has been.

The more important questions are:

• Will the existing customers remain?
• Will key staff stay after settlement?
• Will margins remain sustainable?
• Is future capital expenditure likely?
• Can the current cashflow support future debt?

A successful acquisition isn't determined by the quality of the historical accounts alone.

It's determined by the confidence you have in the business continuing to perform after the keys are handed over.

Past performance provides context.
Future performance determines value.

That's why understanding the commercial risks behind the numbers is just as important as understanding the numbers themselves.