The Due Diligence Dance: What RTO Buyers Need to Know

The Due Diligence Dance: What RTO Buyers Need to Know

Congratulations! You’ve found a Registered Training Organisation (RTO) that seems like the perfect fit for your goals. Before you sign on the dotted line, however, there’s a crucial step known as due diligence.

Think of it as a dance – a waltz between you – the potential buyer and the RTO seller.


It’s a chance to thoroughly assess the RTO’s health, identify potential opportunities and challenges, and ensure you’re making a well-informed investment.


Infinity Business Brokers – The RTO Specialists understand the importance of navigating this due diligence dance smoothly. Here is a guide through some key aspects a RTO buyer should focus on:


  1. Unmasking the Financials:
  • Financial health: Request comprehensive financial statements for the past few years. Analyse revenue streams, profitability, and debt levels.
  • Compliance records: Review any past audits.
  • Student data: Understand student enrolment trends, completion rates, and course popularity.


  1. Partnering with Documents:
  • Training materials: Review marketing, training materials, TAS and assessment strategies.
  • Staff qualifications: Evaluate the qualifications and experience of trainers and assessors. Ensure they meet ASQA requirements.


  1. The Legal Lowdown:
  • Contracts and agreements: Scrutinise relevant contracts, including leases, employee agreements and any outstanding debts.
  • Intellectual property: Understand the ownership of any intellectual property associated with the RTO’s courses.
  1. Having a Candid Conversation:
  • Meet the team: Connect with the RTO’s key personnel and management. Understand their vision and potential concerns about the transition.
  • Student feedback: Review student satisfaction surveys, if available, to gain insights into the RTO’s strengths and weaknesses from a learner’s perspective.
  • Reason for sale: Understand the seller’s motivation for selling. This can reveal valuable information about the RTO’s current situation.


Remember, due diligence is a two-way street. While you’re evaluating the RTO, it’s also an opportunity for you to showcase your own qualifications and vision for the future. A smooth and transparent due diligence process fosters trust and sets the stage for a successful transition.


Ready to take the lead in the RTO market? We have surrounded ourselves with experienced, knowledgeable and industry focused professionals including RTO lawyers, RTO accountants and RTO Compliance consultants. Whilst Infinity Business Brokers will always be your trusted partner throughout the entire acquisition process, our larger team will ensure all your concerns can be attended to.


Our extensive experience in RTO sales (over 140 of them) will help you navigate the due diligence dance with confidence.