For buyers reviewing Australian businesses under $3M
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.
Includes Red/Amber/Green verdict • 48-hour delivery
The 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.
Every report ends with a verdict
You don't want a 30-page report that hedges every conclusion. You want a clear answer: should I keep going, or walk away? Every Red Flag Report ends with one of three verdicts.
Material risks that should kill the deal. Specific findings that make the asking price impossible to justify. Walk away and save yourself the DD costs.
Worth pursuing — but only if you get specific answers from the broker first. We give you the exact questions to ask before spending another dollar.
Looks clean from an operator's point of view. Time to move to formal due diligence with your accountant and solicitor. Here's what to focus on.
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
Free resources
Two free ways to see how this works. Download a complete sample Red Flag Report — a full 13-page operator-level review built around a worked example — or grab the checklist of 17 red flags to run against any business yourself. No payment, just your email.
Pricing
A Snapshot tells you fast whether a deal is even worth your time. If it is, the Full Report goes deep on every risk — and your $49 Snapshot fee comes straight off the price.
A fast read on whether the deal is worth pursuing
The complete operator-level review
Bought a Snapshot first? If you upgrade to the Full Report, your $49 comes straight off the price — so starting with a Snapshot never costs you extra.
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
Pick a Snapshot or the Full Report and pay securely through Stripe. Takes about a minute.
Straight after checkout you land on a secure page to upload the Information Memorandum and any listing details.
Within 48 hours you get a Red / Amber / Green verdict plus the depth of analysis matching your tier.
Before you start, have these handy: the business listing link, the Information Memorandum (IM), and any P&L or add-back schedule the broker has given you.
FAQ
The Snapshot is a fast, focused review — the Red / Amber / Green verdict, the three or four biggest red flags, and the key questions to ask the broker, delivered within 48 hours. It tells you quickly whether a deal is worth pursuing at all. The Full Report is the complete operator-level review: detailed analysis of every red flag, the add-back and adjusted-earnings analysis, valuation sanity check, recommended deal structure, and the full questions list. If you start with a Snapshot, your $49 is credited toward the Full Report.
Yes. If your Snapshot says a deal is worth a closer look, order the Full Report and your $49 Snapshot fee is credited against it. The Full Report is a deeper piece of work — a genuine step up, not just more of the same.
No. This is an operator-level practical review based on real experience buying and running small businesses. It is not accounting, legal, tax, valuation or financial advice, and it is not a substitute for formal due diligence. Always engage qualified professionals before completing an 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, trades, industrial, commercial, professional services, and franchise resales. I focus on Australian businesses, so I don't review businesses based outside Australia.
That's a great outcome — the verdict comes back Green, meaning the deal looks clean from an operator's perspective and is worth pursuing with formal due diligence. You'll still receive a full report with our analysis and recommended next steps.
Get started
Pick your level of review and pay securely. Right after checkout you'll upload the IM — and you'll have your Red / Amber / Green verdict within 48 hours.
Secure checkout via Stripe • Upload your IM right after payment • 48-hour delivery