The Business Owner's Due Diligence Manual
Imagine buying a house only to discover a major structural issue after closing. M&A deals can be similar. Due diligence acts as a comprehensive inspection, uncovering hidden problems like outstanding debts, potential lawsuits, or other surprise reductions in value. By meticulously examining financial records, contracts, and operational processes, among many other things, you can identify quality businesses for purchase, spot red flags that could derail the deal or significantly impact its value. This knowledge empowers you to walk away from troubled businesses, negotiate a lower price, or plan for known improvements – all crucial steps to avoid financial pitfalls and protect your investment.
Key Points
WHO IS THIS INTENDED FOR?
This is an instruction manual intended for business owners who would like to learn more about the topic of due diligence. It is written for those who are intending to purchase an entire company. This is because the purchase of an entire company holds higher risk and therefore, carries deeper and more careful due diligence. This manual assumes you have at least a minimum understanding of business and financial information.
Further assumptions include the assumption that the company purchase is structured as a stock sale and as such, you are buying the company, its assets, liabilities and all other company resources to continue the operations into the future under your new ownership. This may or may not be your actual intention. If your intention is something else, please be assured that this is a complete due diligence training manual. Should you have intentions of buying some, but not all of another company, you can reduce or eliminate many of the tasks listed here as this is a complete list which may be edited for your best use.
WHAT DOES THIS MANUAL DO FOR YOU?
- Educate you, the business owner
- Understand where your due diligence time is best spent
- Use due diligence to reduce your risk of loss
- Use due diligence to create value in a company buy/sell situation
WHAT BUSINESS OWNER CONCERNS DOES THIS COURSE ADDRESS?
- Learn to better judge the quality of the company you evaluate
- Learn how to better judge the business viability
- Learn how to reduce your risk of loss through due diligence
- Learn how to increase your chances of creating value
- Learn the many due diligence tasks you need to perform
- Receive a checklist of tasks to complete
- Gain a deep understanding of due diligence activities which can benefit you
WHAT’S INCLUDED WITH THIS?
- Online Document with 17 pages instructing you on the specific tasks of due diligence
- A separate document – a due diligence checklist for your use
- These documents are provided to you in .pdf format
- These are documents only. There is no consulting included. Consulting may be purchased separately
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