How to complete a thorough due diligence when acquiring a business

In the ever-evolving realm of business expansion, acquisitions emerge as powerful drivers of success. They present a thrilling opportunity to instantly double your business, skipping the lengthy process of organic growth. Through acquisitions, you not only achieve increased scale and efficiency but also gain the freedom to delegate day-to-day operations. Furthermore, your margins, purchasing influence, and market share undergo swift enhancement, marking the dawn of a prosperous new era.

However, the road to successful acquisitions is paved with layers of due diligence. Successful acquisitions hinge on meticulous due diligence across asset valuation, reference ability checks, and legal searches. By prioritising these critical steps and leveraging the expertise of TrailBlazer Finance, you pave the way for transformative growth and prosperity in your business ventures.

1st Level: Asset Valuation Due Diligence

At the outset, it’s imperative to conduct due diligence on the true value of the asset you’re acquiring. Engaging a third-party expert to perform a detailed valuation ensures accuracy and transparency in assessing the asset’s worth and its potential for leveraging. While some may possess the expertise and resources to undertake this task internally, most opt for the objectivity and proficiency offered by external valuers.

2nd Level: Reference ability Checks

Delving deeper, it’s essential to scrutinise the character and reputation of the vendors involved. Conducting reference ability checks by reaching out to business development managers, partnership managers, and individuals associated with the target acquisition provides invaluable insights. Identifying any red flags regarding the vendor’s integrity or reputation is crucial, as acquiring an asset tainted by poor character can prove detrimental to your business. TrailBlazer Finance has numerous methodologies to delve deep.

3rd Level: Legal Searches

Lastly, thorough legal searches are indispensable to ensure a seamless acquisition process. These searches encompass verifying ownership, clearing titles, and identifying any encumbrances or outstanding debts associated with the asset. By meticulously conducting these searches, you safeguard against potential legal entanglements that could impede the acquisition’s success.

Although every acquisition journey may unfold with its own set of nuances, certain foundational principles persistently stand firm. With the expert assistance of TrailBlazer Finance, meticulously addressing these aspects of due diligence empowers you with the optimal opportunity for success in your acquisitions endeavours. 

Interested in gaining insights into the crucial aspects of a prosperous acquisition? Our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” meticulously crafted by our specialist funders, offers valuable guidance to navigate the process effectively. Download today.

Navigating the Approval Process in Acquisitions

A successful acquisition has the potential to transform your business, offering immediate scalability, improved efficiency, and the ability to delegate day-to-day operations. Moreover, it can result in instant enhancements in margins, purchasing power, and market share, propelling your business towards unprecedented success.

However, when venturing into the world of acquisitions, understanding the intricacies of the approval process is paramount. Before proceeding with an acquisition, thorough familiarisation with all relevant legal documentation outlining future payment rights is essential. Let’s delve into what you need to know:

Aggregator, Dealer Group, or Franchise Approval

In the acquisition landscape, securing approval from your aggregator, dealer group, or franchise is often a prerequisite. This step is vital as it grants you the legal right to take ownership of the acquisition target. However, it’s essential to note that approval procedures can vary significantly depending on the entity involved. Trailblazer Finance can guide you through this process. 

Restricted Approval

Approval may come with certain constraints. For example, some aggregators restrict acquisitions to their existing members, while specific mortgage managers may impose prerequisites such as specific guarantees and qualifications. Similarly, franchises typically require acquirers to become franchisees to access acquisition opportunities.

Failing to obtain the necessary approvals poses a significant risk, potentially resulting in the nullification of the acquisition and the loss of deposits or payments made.

Poorly executed acquisitions can spell disaster. Inadequate preparation and due diligence can devalue both the acquired asset and your existing business. Compliance issues further exacerbate the risks, potentially causing irreparable damage.

At Trailblazer Finance, we specialise in guiding clients through the acquisition process, ensuring optimal outcomes every step of the way. From conducting due diligence to negotiating agreements and securing financing, we provide comprehensive solutions tailored to your unique needs. With our expertise by your side, you can navigate the complexities of acquisitions with confidence and achieve your business objectives. Trust Trailblazer Finance to be your partner in success.

Eager to gain in-depth insights into the crucial elements of a successful acquisition? Download our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” crafted by our specialist funders.

Growing smart: How one brokerage turned obstacles into drivers for growth

How one brokerage turned obstacles into drivers for growth

NFS mortgage brokerage is living proof of the success that can be achieved with a mindset acknowledging “the obstacle is the way“. A partnership between two former co-workers, founded in 2016, the business grew by 28% to $233m in 2020 alone. Their experience and approach provide key learnings for similarly resilient brokers.

Read More

The buy-sell cheat sheet: 10 golden rules for preparing to buy or sell a mortgage trail book

10 golden rules for preparing to buy or sell a mortgage trail book

Buying or selling a mortgage trail book need not be a difficult or angst-ridden process. All buyers and sellers really want is to increase the certainty of a sale proceeding and speed up the time to completion, so as to help avoid any nasty surprises.

With that in mind, here are our top 10 golden rules for selling or buying a trail book.

Read More

Show me the money: How to create additional value in your planning practice

How to create additional value in your planning practice

2020 has been a strange year to say the least. With the fate of the economy at large in flux, it has never been as important to future-proof your business. Whether you’re looking to attract new talent, secure additional funding or exit the industry gracefully, it’s worth putting a few tangible strategies in place to enhance the value of your practice

We’ve already looked at the factors that influence practice value, now here are our seven tips for creating additional value in your practice.

Read More

The smart money: How one mortgage broker grew his business through ingenuity, diversification and smart funding

How one mortgage broker grew his business through ingenuity, diversification and smart funding

Back in 2015 Craig Vaughan had an idea. Already running a successful mortgage brokerage (since 2007) he knew there had to be a better, smarter, more efficient way to write more business and create a better client experience without being insanely overworked.

Given that his concern was fairly universal for mortgage brokers, Craig decided the solution was a workflow engine specifically for brokers, geared around enabling teams to effectively allocate, time and track tasks to enable efficiencies and greater loan volumes to be written within agreed SLAs.

Read More

Seven factors that influence practice value: Understanding the factors and what they mean for your financial planning business

Understanding the factors and what they mean for your financial planning business

For financial planners, like most industries, 2020 continues to present a litany of challenges that colour the future with a particular shade of uncertainty that appeals to only the most hardened opportunists. And that’s just the pandemic part. With the transition of financial planning to a profession with massively increased educational and regulatory burdens, the planning industry is under more pressure than most.

As the industry rapidly consolidates, how are the smartest and most adaptable financial planning practices adjusting to the myriad challenges being presented? And where are the opportunities to turn these challenges into upside, build resilience and create additional value in your business?

Read More

Connective appoints TrailBlazer Finance to Asset Finance panel

Connective Asset Finance has announced the appointment of specialist lender, TrailBlazer Finance, to its panel.

The addition of TrailBlazer Finance introduces a funder whose sole focus is unlocking the value of intangibles to which lenders ordinarily give little or no value. This specifically benefits financial planning, property management, accounting and insurance brokerage clients who are typically hard asset-light but have built great recurring revenue streams. This allows them to monetise their recurring revenue without needing property to secure their loan facilities.

Read More

The Balloon Booster, our low repayment loan for mortgage brokers and financial planners

M&A specialist Jeff Zulman explains why brokers who can hold on through the current cycle will emerge stronger


Whether you’re a mortgage broker, financial planner, rent roll business owner, accountant or other cashflow business, we can understand and support your specific business goals and needs.

Contact us

Suite 401, Level 4,
59-75 Grafton Street,
Bondi Junction NSW 2022

1300 139 003

Giving Back