In the previous article in this series, we explained that it’s important to understand why a business is being sold. In this article we explain how to do your homework.
Do your homework
This step is needed because you need to check every aspect of the business just so that you know EXACTLY what you’re getting into once the transaction is complete.
Due diligence covers everything from Articles of Incorporation to Financial Statements all the way to things like Intellectual Properties and Insurance Coverage. Unless you’re amazingly experienced at doing all of these, I would suggest hiring a professional, like a consultant or broker, for assistance with this part. This is a lot of information that you’ll need to acquire not to mention that it will be a lot to go through but I highly advice that you be very patient and diligent with this part of the process as failure to do so cause you to be in a situation that you won’t be able to handle and will just cost you more and more of your money rather than add to it.
There are many references available to ensure you complete your due diligence properly. Be sure to cover everything and if everything checks out, you’ll be another step closer to purchasing your soon-to-be new business.
About Brightblue Transition Solutions
Located on Vancouver’s North Shore we are the premier business broker in the lower mainland, contact us if you need any help buying or selling a business in the greater Vancouver or lower mainland areas.