What is due diligence and why is it important for business purchases?

Due diligence is the process of having relevant industry experts review a business, before a buyer purchases it, to mitigate risks. It involves looking into the financial statements, legal documents and the general operations of a business to give the buyer a better understanding of the business before they become locked in.

Watch the video below to understand why due diligence is important before committing to a purchase.

why due diligence is important

  1. Risk identification
  2. Business evaluation
  3. Negotiation

 

Originally authored by Brendan McGrath.

 

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