The goal of due diligence is for the buyer to confirm the seller’s finances, contracts, customers, and all other information that the buyer needs when taking over the business.
The Point of Due Diligence
The due diligence process is done in order to make the buyer comfortable enough to sign agreements and close the deal.
All due diligence information should be ready and available for the buyer to examine shortly after the letter of intent is signed. Since compiling due diligence information takes time, it is advisable that the seller begin collecting the data when he or she markets the business to potential buyers.