Do It Yourself Business Due Diligence
Okay, you’ve made the decision to buy a business.
Okay, you’ve made the decision to buy a business. You have a lender lined up; an attorney is on the ready line and your CPA is standing by; now you just have to complete the due diligence work. It would be convenient to have either your CPA firm; or law firm perform the due diligence work; however, they have quoted hourly rates at $250/hour (or more) with no cap on the number of hours it might require to complete the work. Who knows what the total bill could be…$8,000…$10,000…$12,000?
So you decide the most cost effective approach is to perform the due diligence yourself.
There is just one problem. You’ve never performed due diligence before and questions keep rolling around in your head. “Where do I begin? What information do I ask the Seller to provide? What am I looking for? How do I interpret the information provided by the Seller?” Read more