The Red Flag Report
I review the listing and information memorandum from an operator's point of view — so you can spot risks before paying for formal due diligence.
Get Your Red Flag ReportThe problem
Brokers work for the seller. Information memorandums are sales documents. And formal due diligence costs $5,000–$30,000 — money you shouldn't spend until you know the deal is worth pursuing.
Brokers inflate profit with questionable addbacks — fictitious manager wages, one-off costs that recur every year, owner expenses that aren't really discretionary.
The listing says the owner only works 10 hours a week. Reality: they're doing sales, quoting, staff management, and on-call 7 days. You're buying a 60-hour week.
No written contracts. One client is 40% of revenue. Key staff have no employment agreements. The business you're buying could look very different in 6 months.
Asking price of $650K on "$273K profit" sounds like 2.4x. But after a replacement operator, real absentee profit is $190K. You're actually paying 3.4x.
What you get
Not a legal opinion. Not an accounting report. A practical assessment from someone who has personally bought, operated, and sold small businesses — and knows what the broker isn't telling you.
Real examples
These are actual findings from recent reviews. Business names and identifying details have been redacted.
Fictitious addback
"The broker claims $188K adjusted profit. After removing a fictitious $86K manager wage addback — the owner only works 5 hours per week and the Operations Manager is already on the wages line — real absentee profit is $100–125K. That's 34% lower than advertised."
Business: REDACTED — Grounds Maintenance, Brisbane — Asking: $450K
Revenue concentration
"The business has no written contracts with any of its 36 clients. One single client represents 40% of total revenue. Annual client churn is 14%, with losses driven by a structural industry shift that the owner cannot control."
Business: REDACTED — Industrial Services, SEQ — Asking: $249K
Overpriced
"Asking price implies a 4.5x multiple on real earnings. After adding the cost of a replacement operator and an equipment lease the owner didn't disclose upfront, fair value range is $70K–$110K vs asking price of $249K."
Business: REDACTED — Industrial Services, SEQ — Asking: $249K
Pricing
All reports are delivered within 48 hours. No subscriptions, no retainers — pay per review.
Per review
Per review
Per review
About
I'm Jason Power. I've personally acquired 9 small businesses, sold 2, and reviewed hundreds of information memorandums over 15+ years across industries including property management, commercial services, industrial operations, and entertainment.
I built The Red Flag Report because I kept seeing the same thing: first-time buyers getting burned by inflated profit claims, hidden owner dependency, and brokers who work for the seller — not you.
This isn't theoretical. Every red flag I check for is one I've seen in a real deal — often the hard way. I do the same analysis on every business I consider buying for myself. Now I'm offering it to you.
How it works
Submit the business listing URL and Information Memorandum through our secure form. Any financials you have are a bonus.
Your documents are reviewed by an experienced business buyer — not a junior analyst, not an algorithm. Real operator expertise.
Within 48 hours you receive a clear, practical report with red flags, a valuation sanity check, and a verdict: Pass, Investigate, or Worth Pursuing.
FAQ
No. This is an operator-level practical review based on experience buying and running small businesses. It is not a substitute for professional legal, financial, or accounting advice. You should still engage qualified professionals for formal due diligence before completing any acquisition.
48 hours from when we receive your documents. Most reports are delivered within 24 hours.
The business listing URL and the Information Memorandum (IM/booklet) from the broker. If you have any additional financials (P&L, tax returns, addback schedules), send those too — the more we have, the better the review.
No. I am completely independent and work only for you. I have no relationship with any broker, seller, or intermediary. My only interest is giving you an honest assessment.
Any small to medium business for sale in Australia — service businesses, trade businesses, industrial, commercial, professional services. I don't review franchises, large enterprises, or businesses outside Australia.
That's a great outcome — it means the deal looks clean from an operator's perspective and is worth pursuing further with formal due diligence. You'll still receive a full report with our analysis and recommended next steps.
Get started
Tell us about the business you're looking at. We'll review your documents and deliver your report within 48 hours.