When you are considering buying a business, conducting due diligence ensures you have access to important information about the business you’re buying. It’s the best way for you to assess the value of a business and the risks associated with buying it.
Due diligence should be incorporated into your Business Contract, unless it is carried out before the Contract is entered into.
Through the due diligence process, you thoroughly investigate all aspects of a business for sale. You look at the business operations, financial performance, legal and tax compliance, customer contracts, intellectual property, assets and other details, often within a time period specified in a Contract condition.
The information you collect during due diligence is highly sensitive and confidential. The seller might want you to sign a non-disclosure agreement before you access this information.
Typically a checklist consists of considerations toward: