What is due diligence from a buyers perspective? Here are the four main things a buyer should do:
1. Verification: The buyer will want to verify that the information provided by the seller about the business is accurate and complete. This may include reviewing financial statements, tax returns, contracts, and other documents.
2. Risk Assessment: The buyer will want to assess the risks associated with acquiring the business. This may include reviewing legal, financial, and operational risks.
3. Valuation: The buyer will use the information obtained during the due diligence phase to determine the value of the business and negotiate a fair price.
4. Decision Making: The buyer will use the information obtained during due diligence to make an informed decision about whether to proceed with the acquisition and on what terms.
