Selling Your Business, Part 3: Getting a Head Start on the Due Diligence Process

Due diligence is the process a potential buyer goes through prior to closing on an acquisition.

The Importance of Due Diligence

“Must-Examine” Areas for Due Diligence

While that is indeed critical to the process of selling a business, the business owner should also consider:

Organizational information like bylaws, operating agreements, and/or agreements between owners regarding equity contributions.

Any and all contracts, including supply, financing agreements, insurance policies, employment contracts, and advertising agreements.

Employment or labor issues, such as benefit plans, vacation policies, and wages generally.

Intellectual property such as copyrights, trademarks, and trade names.