7 Fundamentals To Due Diligence As A Buyer You Need To Know
A recent article from Divestopedia entitled “7 Fundamentals to Due Diligence You Need to Know” explains the due diligence process and what it means regarding sellers and buyers and their roles in the process.
Whether a company is being sold or it is merging with another company, it is standard practice to go through the due diligence process. Therefore, they should be aware of all the factors involved with the due diligence process. The fundamentals of due diligence can be broken into 7 categories:
- Historic and Projected Financial Information
- Technology Developments and Intellectual Property
- Customers and Revenue Streams
- Contract Agreements and Insurance
- Key Staff and Management
- Legal and Compliance
- Tax Issues
In each of these 7 critical areas, the buyer and the seller each have to do their part in order to see the deal make it to the finish line. The seller has to be open and honest with the attorneys, their advisory team and the potential buyer; and the buyer has to be thorough in examining and combing through all of the information provided.