Buyer Due Diligence
Buyer’s due diligence is the investigation you will engage in after the seller has accepted the offer to purchase to ensure that the business is worth the investment. Your business broker, accountant and business lawyer can guide you through this process so you do not miss anything important.
During the due diligence process, you will look into all aspects of the company, including its history, the management team and other staff, products and services, procedures and processes, and financial, accounting, and legal records. This may be done by examining all documentation, looking at the physical assets, talking to those involved in operating the business and getting third-party confirmation of the information provided by the seller.
Remember that the information you learn is confidential. You will have to sign a confidentiality agreement and adhere to its conditions.