Business Buyer’s Due Diligence
The due diligence process is the investigation the potential buyer will engage in after you have accepted the offer to purchase to ensure that your business is worth the investment. Many deals fall apart during due diligence, often because the buyer finds something unexpected that, even if it is easily resolved, turns the buyer off the idea of purchasing.
To ensure you’re prepared for the due diligence process, you can get a due diligence checklist from your business intermediary and go through it yourself before you sell. This gives you the opportunity to address potential issues well ahead of time and can reduce the stress of the due diligence period for everyone.
Be aware that the due diligence process can be a little unnerving. The buyer will be looking closely at every aspect of your business and asking questions that can seem intrusive. Remember that due diligence is the buyer’s obligation. Staying calm and providing requested information in a timely manner will keep the deal flowing smoothly to a successful closing.