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


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The information provided on this website is a brief overview and does not constitute any type of advice. We endeavour to ensure that the information provided is accurate however information may become outdated as legislation, policies, regulations and other considerations constantly change. Individuals must not rely on this information to make a financial, investment or legal decision. Please consult with an appropriate professional before making any decision.