Get Ready for Due Diligence Long Before You Want to Sell

It may seem odd, but as soon as you start up a business, you should begin the documentation needed to sell or merge with another enterprise. It may be years down the road but the records often required in today’s M&A environment can be overwhelming. If your record keeping has been shoddy, it can be difficult or impossible to compile the information wanted by a potential buyer or partner.

You don’t want to forgo opportunities just because you didn’t have the necessary paperwork in order.

So what kind of information will you be asked for in the due diligence process? Below is a list of some common items.

As you can see from the list, the information that may be requested in M&A transactions can be quite detailed. Potential buyers and partners want full disclosure about operations so there are no surprises. Compile and update documentation so you are as prepared as possible.

This checklist only contains some of the items you may be asked to produce. The exact information depends on the business, the potential buyer and the industry involved. Kirsch CPA group helps owners prepare their business to be sold. If your goals include selling your business in the future, contact John Kirsch at 513-858-6040 to start structuring your business for sale.