You never know when you might sell your business therefore you should always be doing due diligence so you are prepared to sell your business when the time comes. In fact, continuing internal due diligence should just be a part of your businesses operating procedures.
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Vasilios Peros,Esquire (www.peroslaw.com) recently wrote an article on the importance of pre-sale due diligence when selling your business.
There are many reasons why you might not know when you are going to sell your business including:
- Health reasons for you
- Health reasons for a loved one
- Loss of larger clients or changing market
- Loss of key people
- Surprise offer that might make sense
- Need to re-capitalize
- A growing aversion to risk
- “Just Can’t Take it Anymore”
Mr. Peros states, “In conclusion, pre-sale business due diligence is critical to achieving a high sales price and favorable terms. Surprises resulting from a potential buyer’s due diligence can be detrimental. Accordingly, pre-sale preparation and due diligence should be made a part of normal operations of a business. With some budgeting and planning, issues identified can be resolved over a period of time and not at the last minute before a sale. The outside advisors of the business can perform many of these pre-sale diligence tasks, allowing owners to focus the majority of their time on running their business.”
Harvest Business Advisors
Business Brokerage | Business Valuation
Maryland | New Jersey