Due diligence: Are you ready?
Any potential buyer of your business will want to conduct due diligence.
They will want to kick the tyres and look under the bonnet, in order to try and find out everything that they can about the workings of the business.
In order to achieve the value that you want for the business it is important that you are ready and prepared for this.
As a seller, your preparations must begin the moment you start entertaining the idea of selling your business.
It is always advisable to complete your own thorough audit of all aspects of the business in order to identify any issues, so that they can be rectified before a buyer discovers them.
Being ready and willing to disclose information, which clearly answers all the buyer questions in an organised fashion, will put the buyer at ease.
When preparing for the due diligence process, it is also extremely important to ensure that no information about the business is revealed to a buyer until a Non-Disclosure Agreement (‘NDA’) has been signed.
Your preparations must begin the moment you start entertaining the idea of selling
An NDA is a legal document between two parties which protects sensitive information and in the case of a sale will prevent the Buyer from disclosing confidential information that it receives from the Seller during the course of the due diligence process.
As Benjamin Franklin once said, “By failing to prepare, you are preparing to fail” and this has never been more true when you are preparing to sell your business.
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