Business Buying Strategies from The Dealmaker's Academy Mastering Business Acquisitions: Due Diligence and Strategic Insights
Aug 8, 2024
Discover the vital role of due diligence in business acquisitions with insights on financial, legal, and commercial assessments. Hear from an experienced deal maker who transitioned from redundancy to entrepreneurship. Explore the advantages of targeting larger acquisitions and the unique challenges of small versus big businesses. Gain practical advice on mitigating risks, understanding financial records, and the importance of taking decisive action. Learn how to navigate the complexities of acquiring sustainable businesses for lasting success.
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Core Financial Due Diligence Steps
- Financial due diligence ensures the business numbers are accurate and reliable, requiring examination beyond just statutory accounts.
- Full accounts, management accounts, bank statements, VAT returns, and corporation tax returns form the core documents to build a financial picture.
Legal Due Diligence Essentials
- Legal due diligence confirms the seller has the right to sell the business and protects against unknown liabilities.
- It includes verification of ownership, copyrights, patents, and investigation of pending lawsuits.
Commercial Due Diligence Tactics
- Conduct commercial due diligence by surveying customers and reviewing online reviews to confirm the business's goodwill and reputation.
- Gaining legitimate access to customers helps assess product quality and customer satisfaction without alerting the market to a sale.