Good Reasons To Conduct Seller-Side Due Diligence
Due diligence will be undertaken if and when you sell your company, why not take control? Sell-side due diligence ensures that you will be more likely to avoid delays and address buyer concerns when you sell your business. The earlier you move forward, the more likely you will be to mitigate risk and maximize value for the company you worked so hard to build… Three Big Reasons Government Contractors Should Complete Seller-Side Due Diligence – JD Supra
Due diligence is the investigation of all material facts in regards to a sale. It includes reviewing all financial records, contracts and legal documentation, employee records and anything else that is material to the sale.
Typically, due diligence is undertaken by buyers prior to entering an M&A or business purchase transaction. However, as the article argues, you can run the same kind of due diligence investigation internally to ensure nothing untoward turns up when the buyer starts digging.
When sellers perform a due diligence analysis on buyers, as in our related article, it’s primarily on the buyer’s ability to finance the transaction and on his/her suitability to take ownership.