The checklist for due diligence on sell-side will help you organize all the information buyers might want to know before making a deal. By looking at your company through a buyer’s lens, you will identify potential risks and increase your ability to negotiate an acceptable price for your business.
As a growing number of business owners realize the importance of a thorough sell-side due-diligence process, they are also leveraging it to help them achieve higher valuations for their businesses. By addressing important issues prior to the sale process starts, owners can diminish surprises, shine a spotlight on hidden value and reduce the buyers’ negotiating power at the table.
Key Items for Your Sell-Side Due Diligence Checklist
Financial data is the most important item to include on any checklist for due diligence. The buyer will need to review your financial statements in detail including expenses and income, assets, liabilities, and shareholders’ equity. It is essential to give the buyer a copy of all the important legal documents, like contracts, agreements and leases that could affect the transaction.
In addition to your company’s financial information, prospective buyers will also want to know the way your business model is structured and the management team that oversees it. Therefore, it’s beneficial to put together a presentation that clearly explains your business structure, your most important employees and your strengths in the operational area.
