Selling your business as a complete, turnkey operation can be a lengthy process. The due diligence that the potential buyer will perform before signing a purchase agreement is quite possibly the most time-consuming part of the sales process, which can disrupt the day-to-day conduct of your business. If you are considering the sale of your business, completing due diligence of your own business beforehand can give you advantages at the negotiating table, such as:

It allows you time to remedy situations that could be red flags in the eyes of a potential buyer, such as updating your corporate records, terminating contracts that are no longer useful in the business, and addressing employment or independent contractor arrangements that may need written clarification.

It lets you respond to an extensive request of documents with a quick turnaround and in an organized fashion that can give the buyer a strong impression of your business. It shows you are on top of what’s going on with your business, you are at a low risk of having surprises pop up that could make the buyer wary, and you have nothing to hide.

It provides your attorney and accountant ready access to documentation that can help answer questions from the buyer’s counsel, allowing you to continue running your business rather than be side-tracked with ongoing requests for additional information.

It enables you to preemptively address possible areas of weakness that the buyer may try to exploit by offering a reduced purchase price.

Here at Wright Beamer, we can help prepare you for the due diligence investigation and the completion of the sale. If you are interested in selling your business in the future or acquiring a business, let us know and we’ll walk you through the transaction process.